STORY: The Trump administration is nearing a deal to rescue embattled low-cost carrier Spirit Airlines.
That's according to a report in the Wall Street Journal on Wednesday, which said the U.S. government will lend Spirit as much as $500 million in exchange for warrants to take a potential stake in the carrier.
Spirit in August filed for its second Chapter 11 bankruptcy in less than a year.
President Donald Trump told CNBC this week that he would like someone to acquire the airline and said it was possible the federal government could get involved.
Global carriers are contending with surging jet fuel prices after U.S.-Israeli strikes on Iran disrupted traffic through the Strait of Hormuz.
Spirit built its turnaround plan based on fuel costs averaging ?about $2.24 per gallon in 2026 and $2.14 in 2027, according to its March disclosures.
But by mid-April, jet fuel prices were around $4.24 a gallon, two dollars more than the carrier's projections.
The pending government deal would mark the latest example of the Trump administration's intervention in public companies, following stakes in Intel, MP Materials and other firms.
Spirit declined to comment on the matter but said it was operating normally.
