# US Budget Airlines Seek $2.5 Billion Government Aid Package

_Apr 27 03:52_

Tags: Avelo Airlines, Frontier Airlines, Spirit Airlines, airline, safety & operations, industry news

CEOs of Spirit, Frontier, and Avelo met with Transportation Secretary Sean Duffy to propose a $2.5 billion aid package to cover jet fuel costs, potentially involving government equity stakes

## Summary

US budget airlines, including Spirit, Frontier, and Avelo, are seeking a $2.5 billion government assistance package to cover projected jet fuel costs, assuming prices remain above $4 a gallon. This follows a meeting on April 21, 2026, between airline CEOs, Transportation Secretary Sean Duffy, and FAA Administrator Bryan Bedford. The aid would likely come as warrants convertible into equity stakes. The proposal comes amid concerns over Spirit Airlines' potential liquidation and broader industry struggles due to high fuel costs and the Iran war's impact on oil prices. While full-service carriers like Delta and United are performing well, budget carriers face pressure from price-sensitive customers. The government previously provided $54 billion via the CARES Act during the pandemic. Discussions are ongoing, with potential implications for industry consolidation and government ownership of major carriers

## Why it matters

Affects 3 airline programs (Avelo Airlines, Frontier Airlines, Spirit Airlines).

## Sources cited

- [One Mile at a Time](https://onemileatatime.com/news/budget-airlines-demand-government-assistance-stay-afloat) — US Budget Airlines Demand $2.5 Billion In Government Assistance To Stay Afloat

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