US Budget Airlines Demand $2.5 Billion In Government Assistance To Stay Afloat

Over the past week or so, there has been lots of talk of the government bailing out Spirit Airlines, which is on the brink of liquidation. If finalized, this would almost certainly give the government a 90% stake in the budget carrier. This is just an all-around terrible situation for airlines. The Wall Street Journal reports on a meeting that happened on Tuesday, April 21, 2026, between the CEOs of some US budget airlines, Transportation Secretary Sean Duffy, and FAA Administrator Bryan Bedford. Executives from Frontier and Avelo, among other airlines, were reportedly in attendance. Under the proposal, the airlines are seeking a roughly $2.5 billion aid package, which is how much more they estimate they will spend on jet fuel this year compared to earlier forecasts, assuming jet fuel prices remain above $4 a gallon.

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