President Trump said on Tuesday that he was opposed to a merger of United Airlines and American Airlines, but that he welcomed other airline deals and was open to the government’s helping at least one struggling carrier.
Mr. Trump said he did not “mind mergers” and would welcome a deal that might rescue Spirit Airlines from bankruptcy. He also suggested that the federal government could provide assistance to keep Spirit in business.
“Spirit’s in trouble, and I’d love somebody to buy Spirit,” he said in an interview with CNBC on Tuesday. “It’s 14,000 jobs, and maybe the federal government should help that one out.”
Spirit is in its second bankruptcy in two years. It has been hurt by fierce competition, rising costs, a failed attempt to sell itself to JetBlue Airways and problems with some of its jet engines. The rise in the cost of jet fuel stemming from the war in Iran has recently added to Spirit’s difficulties.
It is not clear how the Trump administration might help Spirit, and Mr. Trump offered no details about what options he was considering. The U.S. government has offered financial assistance to airlines in the past, including after the Sept. 11, 2001, terrorist attacks and during the Covid-19 pandemic, but that aid was authorized by legislation.
Spirit’s position is further complicated by its bankruptcy, which makes it more difficult for the government to buy shares in the company. Any effort by Mr. Trump to help Spirit could also encourage other smaller airlines that are struggling because of the war to ask for government assistance.
But in his second term, Mr. Trump has been much more willing and eager to take stakes in companies under untraditional circumstances than he was during his first term. Since his return to the White House, the government has taken a 10 percent stake in Intel, accepted a “golden share” in U.S. Steel as part of its sale to Nippon Steel and invested in several critical minerals companies to shore up U.S. supply chains.
In many of these deals, the Trump administration has argued that the U.S. taxpayer would get the benefit of any upside from the investment. But Spirit faces many challenges, some of which may not be addressed by an infusion of government funds alone.
In recent years, for example, many larger airlines like United, Delta Air Lines and American, have successfully lured customers from Spirit and other low-fare carriers by offering “basic economy” fares that are cheaper than their standard economy tickets.
“Part of Spirit’s troubles are due to the fact that the legacy airlines now offer a product that sort of mimics the ultra-low-cost-carrier business model,” said Jan Brueckner, a professor at the University of California, Irvine. “That problem is not going away.”
Still, Mr. Brueckner is supportive of efforts by the government to back the airline, he said, even though it is a “gamble” in the sense that if Spirit goes away the airline industry will become less competitive. “The presence of that airline is important for passengers because not only does it sell cheap tickets itself, but it provides fare discipline for other carriers,” he said.
Separately, Mr. Trump’s transportation secretary, Sean Duffy, said on Tuesday that he was meeting in the afternoon with executives of several low-fare airlines. Mr. Duffy said that the president had asked him to look into helping budget carriers like Spirit and that the two men would meet later to discuss airlines.
Spirit did not respond to a request for comment.
Mr. Trump’s opposition to a United-American deal comes after reports last week that United’s chief executive, Scott Kirby, had floated the idea with the president in February. Such a deal would create a global behemoth. American has more flights than any other airline, followed by Delta and then United.
“I know them both very well — I don’t like it,” he said of United and American.
American has also dismissed the idea, saying in a statement on Friday that it was “not engaged with or interested” in negotiating a deal with United.
United declined to comment.
Karoun Demirjian contributed reporting.
https://www.nytimes.com/2026/04/21/business/trump-spirit-airlines-united-american.html
