Spirit Aviation stock is soaring on reports that White House is considering a rescue deal
Patrick T. Fallon / AFP via Getty Images
- Spirit Aviation stock soared on Wednesday on news that the US government could take a stake
- The stock first jumped on Tuesday after President Trump said the government should help it.
- Reports indicate that the administration is considering a $500 million loan to the budget airline.
The move: Spirit Aviation stock surged more than 400% on Wednesday. The stock, which was trading in penny-stock territory this week, reached $1.62 after trading at $0.27 on Monday. The jump brings the week's gain to 560%. The stock was delisted in 2024 and trades in the over-the-counter market.
Why: The momentum began on Tuesday when President Donald Trump told CNBC that he was surprised the Iran war hadn't tanked markets more, but also addressed the problems facing Spirit Airlines.
"I don't mind mergers. I think I'd love somebody to buy Spirit, as an example," he said. "Maybe the federal government should help that one out."
On Wednesday, the Wall Street Journal reported that the White House is close to a deal to rescue the budget airline, which would see the US government take a majority stake. As part of the agreement, the US would loan Spirit $500 million in exchange for warrants that Bloomberg said could allow it to buy 90% stake of the company.
What it means: If completed, the deal would be the latest instance of the Trump administration taking a stake in a public company. While it has primarily focused on firms in areas the administration has deemed critical to national security, like minerals and mining, it has also taken a stake in tech leaders like Intel.
The White House investments during Trump's second term have sparked significant growth for the stocks and served to make metals and mining one of the hottest trades of 2025.
Spirit would be handed a lifeline by the US after two bankruptcies in the span of about a year.