WASHINGTON, April 21 (Reuters) – U.S. Transportation Secretary Sean Duffy on Tuesday raised concerns about using government funds to rescue low-cost bankrupt airline Spirit Airlines.
“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?” Duffy said in a Reuters interview. “Or does Spirit have some pathway to make it and I don’t know the answer to that.”
President Donald Trump said Tuesday he would like someone to acquire bankrupt low-cost carrier Spirit and said it was possible the federal government could get involved.
“It’s 14,000 jobs, and maybe the federal government should help that one out,” Trump said.
Duffy said it appears no one wants to buy Spirit and it is not clear how Spirit’s customer base feels about the airline. “What would someone buy?” Duffy asked. “If no one else wants to buy them, why would we buy them?”
Spirit did not immediately respond to a request for comment.
Duffy said he would talk to Trump on Tuesday about the fate of Spirit. “It takes a lot more work from inside the government to figure out where we should go,” Duffy said. “By the way if you do do Spirit, who comes next? Who is the third?”
He added: “I care about the employees at Spirit… We also have to be good stewards of the tax dollar. We can’t make dumb investments, we can’t put taxpayer money that is going to be lost or just forestall the inevitable.”
Duffy said there are some who suggest the administration would like all the primary carriers to merge with low-cost carriers.
“I see a world where I want low-cost carriers,” Duffy said. “There’s a market that’s well served by low-cost carriers. And then there’s premium carriers as well. I want to see a vibrant competitive market in each.”
Last week, Reuters reported Spirit Airlines’ bankruptcy exit plan is under renewed pressure after a sharp rise in jet fuel prices undermined key assumptions behind its restructuring.
Spirit is seeking court approval for a second restructuring in less than a year, after emerging from bankruptcy in March 2025.
The administration of Joe Biden went to court in 2024 to block JetBlue Airways’ proposed acquisition of Spirit, arguing it would eliminate an airline that helped keep fares down.
“If Spirit goes away, it’s better for JetBlue,” Duffy said. “If we bail out Spirit, I can’t imagine that JetBlue would love that.”
(Reporting by David Shepardson; Editing by Chizu Nomiyama and Chris Sanders)
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