Spirit Aviation Holdings Inc. has floated offering the U.S. government an equity stake in the discount carrier to help stave off its potential liquidation, according to people familiar with the matter.

The airline is seeking an infusion of cash from the U.S. government during a spike in jet fuel prices, said the people, who asked not to be named given the discussions are confidential. The proposal comes after the White House brokered a deal last year to become one of the biggest shareholders in Intel Corp. in a bid to bolster the investment-grade chipmaker’s domestic initiatives.

The Air Current first reported that Spirit is seeking a bailout from the U.S. government.

Any proposed bailout is likely to get pushback from competitors that are also struggling with a spike in jet fuel prices during the conflict in the Middle East, some of the people said. Transportation Secretary Sean Duffy plans to meet with low-cost airline chief executives this week to discuss their challenges, the people said.

The Transportation Department is monitoring the situation surrounding Spirit, a spokesperson said. The White House didn’t immediately respond to a request for comment.

Spirit representatives didn’t immediately respond to a request for comment.

The Association of Value Airlines, which represents low-cost carriers like Spirit and Frontier Group Holdings Inc., sent a letter to congressional leaders last week asking for temporary relief from certain fees and taxes, including a suspension of the 7.5% federal excise tax on airline tickets, according to a copy seen by Bloomberg News.

The April 14 letter said “absent relief, sustained fuel cost pressures will translate to higher total trip costs for passengers.” Similar relief was granted to airlines during the Covid-19 pandemic.

Spirit was poised to exit bankruptcy by this summer after reaching an agreement with creditors on a plan to trim billions of dollars in debt and reduce the cost of its fleet. The carrier filed for Chapter 11 bankruptcy protection in August 2025 — the second time it had to do so in under a year.

Spirit’s past attempts to merge with other carriers haven’t panned out. Before filing its first bankruptcy, the carrier agreed to be acquired by JetBlue Airways Corp., but a federal judge blocked the tie-up in 2024 on antitrust grounds. Then, Frontier and Spirit revived talks to merge in 2025.

The Transportation Department spokesperson attributed some of Spirit’s current troubles to “the failures of the last administration,” including the blocked JetBlue merger.

(With assistance from Sri Taylor, Soma Biswas and Josh Wingrove.)

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