Spirit Airlines Could See Relief as President Trump Floats Support

Last week, we learned that, per CNBC, Spirit Airlines may have been on its way to liquidation. After all, the airliner filed for Chapter 11 bankruptcy twice in the last year. 

Trump Signal Oppennes to Support

When asked about it, though, Spirit didn't say much. “We don’t comment on market rumors and speculation,” Spirit said in a statement, per CNBC. 

Now, though, there may be some light at the end of the tunnel for Spirit after comments made by President Donald Trump. 

“I don’t mind mergers. I think I’d love somebody to buy Spirit, as an example. You know, Spirit’s in trouble. ... Maybe the federal government should help that one out," said President Trump to CNBC's Squawk Box. 

In recent days, Spirit has sought some government aid from the Trump administration, per The Air Current. 

As mentioned, they filed for bankruptcy twice in a year, with the most recent coming in August. 

Rising Fuel Prices Adding Ample Pressure

The company planned to emerge from bankruptcy by the middle of this year, but the war in the Middle East caused fuel prices to surge, adding more costs. Fuel is the most expensive cost for an airliner after labor. 

On Monday, the average price for a gallon of jet fuel was $3.87 in Los Angeles, Chicago, Houston, and New York, which is up 55% from February 28. 

CNBC also reported that Transportation Secretary Sean Duffy plans to meet with discount carriers to "discuss the impact of higher fuel on their businesses, and attendees are expected to ask for potential tax relief, people familiar with the matter said, requesting anonymity to speak about matters that had not yet been made public."

Right now, it's unclear if the government will help. During the pandemic, the government provided billions of dollars to numerous companies. 

In response to rising fuel costs, various airlines have raised prices for services such as checked bags to help offset the costs.