Overview
- The White House, which multiple outlets reported Wednesday was negotiating with Spirit, is discussing up to $500 million in financing that is not yet finalized.
- The package under review could include stock warrants that give the government a major ownership stake in Spirit, with some reports saying it could reach roughly 90%.
- Spirit is in its second bankruptcy and had planned to exit this summer, but lenders questioned the plan as costs rose and the risk of liquidation increased.
- Jet fuel prices roughly doubled after U.S.-Israeli strikes on Iran disrupted traffic through the Strait of Hormuz, and JPMorgan estimates the spike could add about $360 million to Spirit’s 2026 expenses.
- Transportation Secretary Sean Duffy said he is reviewing options but warned against putting good money after bad, while Spirit says it is operating normally and selling tickets as talks continue.