The Trump Administration may offer Spirit Airlines a $500 million financial lifeline as the carrier teeters on the brink of collapse, according to reports. <\/span><\/p>\n The federal government is considering providing the airline with a convertible financing facility that would allow it to convert debt into equity. According to Bloomberg, the arrangement could give the government the option to acquire a significant ownership stake in the airline, potentially as much as 90% of a restructured entity. <\/span><\/p>\n Transportation Secretary Sean Duffy and Commerce Secretary Howard Lutnick are leading the talks and reportedly met with President Donald Trump on Tuesday night to discuss the proposal.\u00a0<\/span><\/p>\n Trump signaled support for potential federal assistance earlier this week, saying, \u201cMaybe the federal government should help that one out,\u201d while raising concerns about the possible loss of roughly 14,000 jobs.<\/span><\/p>\n Spirit Aviation Holdings Inc.\u2019s shares jumped more than <\/span>500%<\/span><\/a> following reports of the potential deal.\u00a0\u00a0<\/span><\/p>\n Spirit\u2019s financial troubles date back several years, and the airline has accumulated more than $7 billion<\/a> in debt. A planned $3.8 billion acquisition by JetBlue in 2022 was ultimately blocked by the Biden administration\u2019s Department of Justice and later upheld by a federal judge in 2024. Former Attorney General Merrick Garland described<\/a> the acquisition\u2019s termination as a \u201cvictory on behalf of the American consumer,\u201d arguing the merger would lead to increased fares for customers.<\/span><\/p>\n More recently, rising fuel costs tied to the war in Iran have added pressure, with JPMorgan analysts estimating those expenses could increase by as much as\u00a0<\/span>$360<\/span><\/a> million.<\/span><\/p>\n If negotiations pan out, Spirit Airlines will join a growing list of private companies in which the United States has taken a financial stake in recent years, including Intel, MP Materials, Lithium Americas, Trilogy Metals, and a \u201cgolden share\u201d in U.S. Steel, recently acquired by Japan\u2019s Nippon Steel.<\/p>\n<\/div>\n<\/div>\n