What Happened
Federal Intervention May Save Low-Cost Carrier From Liquidation
The Trump administration is in advanced talks to provide Spirit Airlines with up to $500 million in support, a potential rescue package that would mark a rare federal intervention for a US airline. The airline has been facing financial pressure, including rising costs and intense competition, and the collapse of its planned merger with JetBlue. The talks come as Spirit faces the risk of liquidation, with President Donald Trump suggesting the federal government might need to help the airline due to its roughly 14,000 jobs. However, the idea of a rescue is already drawing resistance from some officials and industry leaders. The situation was first reported by Reuters and CNBC, according to AeroTime.