Spirit Airlines is exploring the possibility of government investment as the struggling budget carrier works to avoid potential liquidation, according to reports from multiple sources familiar with the matter.

The Florida-based airline has been in talks with the Trump administration regarding a possible government stake in the company. The discussions come as Spirit faces significant financial challenges that have raised concerns about the airline's long-term viability.

As part of its restructuring efforts, Spirit has been working to sell aircraft from its fleet and refocus its operations on core cities. The airline has been attempting to streamline its business model amid ongoing financial pressures in the aviation industry.

The potential government investment would represent an unusual intervention in the commercial airline sector. Such arrangements typically occur during periods of significant economic stress or when airlines are deemed strategically important to national transportation infrastructure.

Spirit Airlines operates as a low-cost carrier, primarily serving domestic routes within the United States. The airline has built its business model around offering basic transportation services at reduced fares, but this approach has faced challenges in recent years due to increased competition and operational difficulties.