According to a source, the United States would consider resorting to the Defense Production Act within the fram.

Automated translation by Reuters using machine learning and generative AI technology (Please refer to the following warning: https://bit.ly/rtrsauto)

(Adds a statement from the White House and contextual information)

by David Shepardson and Kanishka Singh

The administration of President Donald Trump is considering using the Defense Production Act as the legal basis for bailing out Spirit Airlines, a source told Reuters.

CBS News was the first to report on this project on Friday, citing U.S. officials familiar with the discussions.

The source indicated that the government could invoke Title 3 of the Defense Production Act, which allows the U.S. government to invest in industrial capacities to ensure supply chains for national defense.

The Trump administration “continues to explore possible options to ensure that the airline remains operational for its passengers and employees,” said White House spokesperson Kush Desai.

He added that information regarding the financing mechanism or structure should be considered speculative.

The Defense Production Act is an emergency measure that allows the U.S. government to require private companies to prioritize federal contracts and increase production of essential goods. It also authorizes loans to private companies for national defense purposes, a measure that could provide support to the airline.

Mr. Trump stated on Thursday that his administration is considering buying the struggling airline at a “reasonable price.”

He said, “When the price of oil goes down, we will sell it to make a profit,” to reporters at the White House.

The low-cost carrier based in Florida is running out of time. An attorney for Spirit stated on Thursday that the company needs new funding or access to its liquidity by the end of next week, with a hearing scheduled for next week as the company’s lawyers and creditors seek to reach an agreement on a bankruptcy exit plan.

The Trump administration made a financing offer to help the airline emerge from bankruptcy, an offer that was being reviewed by its major creditors, an external attorney for Spirit said on Thursday.

An attorney for Spirit’s creditors said on Thursday that they had reviewed a list of conditions in the government’s offer, which reportedly includes $500 million in funding and a condition for the government to receive warrants equivalent to 90% of Spirit’s equity.

This priority financing granted to the debtor in possession of its assets would help Spirit exit its second bankruptcy restructuring since 2025.