As sky-high jet fuel prices continue to put intense pressure on airlines’ bottom line, budget airlines are looking for a way to make ends meet. As the federal government weighs a $500 million bailout for Spirit Airlines, more budget airlines are now turning to the Trump administration to stay above the clouds.
A group of low-cost airline executives, including those from Frontier and Avelo, met with Transportation Secretary Sean Duffy and Federal Aviation Administration chief Bryan Bedford last Tuesday, reportedly requesting $2.5 billion in government assistance, according to the Wall Street Journal. And just like the potential Spirit offer, the airlines will issue government warrants that could convert into equity stakes in the companies.
The request assumes that jet fuel prices will remain above $4 a gallon on average for the rest of the year, which the airlines predict will cost an additional $2.5 billion. U.S. jet fuel prices averaged $4.19 on Friday, according to Argus Media. Before the war, prices averaged less than $2.50 a gallon. In its bankruptcy restructuring plan, Spirit Airlines planned to spend $2.24 per gallon in 2026 and $2.14 in 2027, according to a March filing with the Securities and Exchange Commission. Now, prices are almost double that.
The details of the potential aid package are still under discussion, and the airlines’ request was sent to the White House, which did not immediately respond to Fortune’s request for comment.
Earlier this month, budget airlines including Spirit, Frontier, and Avelo, requested Congress approve a temporary break on certain airline ticket taxes to offset about a third of the cost of higher jet fuel. In a letter to lawmakers, the airlines warned that without the relief, travel costs will continue to rise, which will adversely affect consumers at the ticket counter.
Like most U.S.-based budget airlines Frontier and Avelo fly primarily in the U.S., Mexico, and the Caribbean and offer customers cheaper domestic flights. Frontier reported net income of $53 million during the fourth quarter of 2025. Meanwhile, privately owned, Houston-based Avelo reported an operating loss of $6.4 million and a loss margin of negative 7.4% in Q3 of 2025, according to the most recent quarterly results available on the Department of Transportation website.
Spirit’s potential bailout
The global energy crisis has been difficult for airlines across the globe, but it has become a make-or-break moment for Spirit. Even before the war began, the company was working to exit its second bankruptcy in as many years. Now, the airline is reportedly offering equity in exchange for emergency aid, and the White House appears to be open to a deal.
“I’d love somebody to buy Spirit,” Trump said April 21 in an interview with CNBC’s Squawk Box, adding, “Maybe the federal government should help that one out.”
The Trump administration is considering invoking the Defense Production Act to potentially bail the airline out, according to Bloomberg. Under the 1950 law, the president has emergency powers to direct production of goods and services deemed critical to national defense. It is unclear how the Trump administration could use national security to justify the bailout of an airline that heavily focuses on domestic travel.
While the government has bailed out airlines in the past, the government does not typically bail out a single airline. During the COVID-19 pandemic, the government gave U.S. airlines $54 billion in grants and loans to avoid layoffs. The government acquired warrants from the airlines, and later sold them in public auctions for more than $550 million.
