"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. The airlines will give government warrants that could convert into equity stakes in the company."
"The request assumes that jet fuel prices will remain above $4 a gallon 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."
"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. The airlines warned that without the relief, travel costs will continue to rise."
Budget airlines are under financial strain due to soaring jet fuel prices, prompting requests for government assistance. Executives from airlines like Frontier and Avelo met with officials to seek $2.5 billion in aid, similar to a potential bailout for Spirit Airlines. Jet fuel prices are expected to remain high, costing airlines an additional $2.5 billion. Airlines also requested a temporary break on certain ticket taxes to alleviate rising travel costs for consumers. The situation remains under discussion with the White House.
Read at Fortune
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