The Washington Post editorial board joined the Wall Street Journal on Monday evening in condemning President Donald Trump's plan to effectively nationalize Spirit Airlines with a $500 billion bailout in exchange for an up to 90 percent equity stake — and warned that this flirtation with "socialism" could lead to many other airlines coming for a handout.
Spirit Airlines has been teetering on the brink of liquidation for years, going through multiple bankruptcies, and finally facing an existential threat over the Trump administration's war in Iran that has caused jet fuel prices to surge.
"With Spirit Airlines careening toward liquidation, talks are underway for the government to take up to a 90 percent stake in the carrier in exchange for a $500 million lifeline," wrote the board, which under billionaire owner Jeff Bezos' direction has taken a much more pro-business slant in recent months. "The United States does not need an Amtrak or U.S. Postal Service of the skies. Spirit’s failure poses no systemic risk to air travel, and the administration has no business picking winners and losers in a competitive industry."
The bailout for Spirit, the board noted, is already causing other airlines in financial distress to seek bailouts too instead of restructuring to fix their problems: "Low-cost airlines such as Frontier and Avelo are now formally asking for $2.5 billion in exchange for warrants that the government could convert into equity stakes."
"Spirit’s creditors knew what they were getting into after the carrier filed for bankruptcy in 2024 — before Donald Trump returned to the presidency. They took big risks in hopes of big returns but with the understanding that they might not get their money back," the board continued. "The business also made bad business decisions, including agreeing to a deal with its flight attendants union in 2023 that increased wages by more than 40 percent over two years."
Ultimately, the board concluded, "Any taxpayer money wasted on Spirit, Frontier or Avelo would simply prolong the inevitable."
