White House mulls using Defense Production Act in Spirit Airlines takeover [View all]

Source: CBS News

April 24, 2026 / 3:39 PM EDT


The Trump administration is exploring using the Defense Production Act as part of a strategy to save the beleaguered Spirit Airlines, according to U.S. officials familiar with the discussions. President Trump is open to some type of federal action, several sources told CBS News, and he has said publicly he'd "do it to save the jobs."

Spirit has declared bankruptcy twice in the past two years, after the Department of Justice blocked a merger with JetBlue during the Biden administration. The Iran war has been driving up jet fuel costs for all airlines and earlier this month, creditors expressed serious doubts Spirit could remain viable.

The Defense Production Act is an emergency power typically used to compel private sector companies to prioritize government contracts and increase supplies of critical goods. It also includes providing loan authority to private firms for national defense, potentially a lifeline for the airline.

The strategy would be subject to approval from Spirit's creditors, two of the officials told CBS News. The Office of Management and Budget has explored what a federal bailout of Spirit Airlines would look like and has discussed possibilities that would include Commerce Department and Pentagon involvement.

Read more: https://www.cbsnews.com/news/white-house-mulls-using-defense-production-act-in-spirit-airlines-takeover/