ORLANDO, Fla. — The U.S. Government is considering spending hundreds of millions of dollars in taxpayer money to bail out Spirit Airlines, possibly in exchange for an ownership stake.
The Florida-based discount airline carrier is currently in its second bankruptcy restructuring in two years.
“It’s obviously one of the cheapest airlines and it’s accessible to many travelers,” said Hector Bashum, a frequent Spirit passenger.
The taxpayer-funded bailout would cost about $500 million. Clint Henderson, a travel expert with The Points Guy, said that raises more questions than answers.
“How long are we going to be in the low cost carrier business?” asked Henderson. “Is this a good idea? Are we just putting a band-aid on an open wound?”
Spirit’s demise would be a huge financial hit to Central Florida. In addition to employing hundreds of local workers, the airline serviced about 8 million passengers in 2024, down from about 10 million a year earlier.
Without Spirit in Orlando, other airlines could seize the opportunity to hike prices.
“We saw when Spirit pulled out of Minneapolis that Delta raised fares immediately,” said Henderson. “The same thing would happen in Orlando.”
In an interview this week, President Trump said someone “should buy Spirit,” but didn’t mention anything about a government bailout.
Spirit has not commented.
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