What happened: Spirit Aviation Holdings (FLYYQ) stock surged more than 500%.
What’s behind the stock move: The Trump administration may be nearing a deal to save the struggling low-budget air carrier, according to a Wall Street Journal report. Under the terms being discussed, the US government would loan Spirit up to $500 million in return for warrants to take a potential stake.
What else you need to know: Spirit has struggled in recent years amid higher costs and thin margins for low-cost tickets. The airline has been in bankruptcy twice since 2025 following failed merger attempts with JetBlue (JBLU). Spirit h plans to exit Chapter 11 by the early summer.
In an interview on Tuesday, President Trump hinted he was willing to help the carrier.
“Spirit’s in trouble, and I’d love somebody to buy Spirit,” Trump told CNBC. “Maybe the federal government should help that one out.”
Despite the major move on Wednesday, Spirit Aviation is still trading at around $1.40 per share.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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