The Trump administration is nearing a rescue deal for Spirit Airlines, people familiar with the matter said. Under the agreement being discussed, the U.S. government would loan the embattled discount carrier as much as $500 million, receiving in return warrants to take a potential significant stake in the airline.

The Transportation Department and Commerce Department are involved in the discussions, which aren't yet final, and the terms could still change. Spirit has struggled with surging jet fuel prices, which have squeezed margins for budget carriers. This would mark a rare intervention to prop up a single carrier rather than the broader industry.

The government has helped airlines in past crises, including after the Sept. 11 terrorist attacks and during the Covid-19 pandemic. However, those efforts typically supported the entire sector. A targeted bailout for one airline would represent an unusual step and could raise questions about fairness and precedent.