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US may boost rescue funds for Spirit Airlines to $500m

Financial Times Markets •
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The Trump administration is considering a $500 million injection into Spirit Airlines to aid its exit from bankruptcy. This move signals strong government involvement in private sector recovery. The plan would involve a senior loan paired with equity stakes, potentially giving the federal government a majority share.

Spirit faced mounting challenges from high costs and rising fuel prices linked to the Iran conflict. Analysts note this could reshape ownership dynamics and influence future restructuring. The decision underscores the U.S. government's growing role in stabilizing struggling airlines amid economic pressures.