On April 21, 2026, President Trump appeared on Squawk Box where he was asked about rumors of a possible merger between United Airlines and American Airlines.

While President Trump said he didn’t like the idea of a merger between United and American, he quickly moved his attention to Spirit Airlines.

“I think I’d love somebody to buy Spirit, as an example. You know, Spirit’s in trouble and I’d love someone to buy Spirit. It’s 14,000 jobs and maybe the federal government should help that one out. You know, tell my people,” said President Trump.

Spirit is among a group of low-cost airlines in the US that is seeking temporary federal tax relief in response to higher jet fuel prices spurred on by the war in Iran.

The group of carriers, through the Association of Value Airlines, have asked Congress to temporarily suspend the 7.5% federal excise tax on airline tickets and the $5.30 domestic segment tax.

Reports have also recently surfaced that Spirit’s hopes of exiting Chapter 11 bankruptcy have been blunted with the possibility of an imminent liquidation.

On April 15, 2026, Bloomberg reported that a potential liquidation could rear its head as early as the end of last week.

Following President Trump’s CNBC call the Transportation Secretary Sean Duffy spoke with Reuters about the possibility of the federal government supporting Spirit.

“What we don’t want to do is ‌put good money after bad, and there’s been a lot of money thrown at Spirit, ‌and they haven’t found their way into profitability. And so would we just forestall the inevitable and then own that? Or does Spirit have some pathway to make it and I don’t know the answer to that,” said Secretary Duffy.

He also questioned why the federal government would want to buy Spirit “when no one else wants to”.

Credits: Spirit Airlines

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Spirit Airlines could be headed towards a liquidation as surging fuel costs caused by the Iran war are pressuring the company’s finances, Bloomberg reported Wednesday night. The airline has been operating while navigating the Chapter 11 bankruptcy process, but could make the decision to liquidate as soon as this week, per Bloomberg.¹

Spirit filed for bankruptcy last August, its second time doing so in under a year, after exiting its first bankruptcy restructuring months earlier in March. Spirit had reached a deal with its creditors to cut costs and eliminate billions in dollars of debt and said last month that it expected to exit the Chapter 11 process this summer.²

Spirit Airlines did not immediately respond to a request for comment on the report.

Spirit’s troubles before its first bankruptcy included a failed merger with JetBlue (JBLU) that was called off in March 2024 after a judge blocked it on antitrust grounds. Spirit also rejected offers from fellow discount airline Frontier Group (ULCC) while undergoing its first bankruptcy process last year.

Frontier shares surged Thursday morning on the news of Spirit’s potential liquidation, rising more than 7% to a six-week high.

The surge in fuel prices resulting from the Iran war has prompted airlines across the industry to raise ticket prices and fees recently. Travel demand has remained strong, but higher fuel costs weigh on the profit margins of airlines.

Credits: Spirit Airlines

The post Spirit Airlines Was Set To Exit Bankruptcy This Summer. Now High Fuel Prices Could Force It To Liquidate. first appeared on AircrewNews.com.