US low-cost airlines, including Frontier Airlines and Avelo Airlines, hope to receive $2.5 billion in financial assistance from the US administration in exchange for guarantees allowing the government to buy their shares, The Wall Street Journal (WSJ) reported, citing its sources.
This is the amount that the airlines believe they will have to spend extra on fuel in 2026. This estimate is based on a forecast that prices will remain above $4 per gallon (3.79 liters) until the end of 2026.
The request comes as the US administration is separately considering providing financial assistance to Spirit Airlines to prevent its liquidation. Spirit Airlines is in talks to borrow up to $500 million in exchange for warrants that could give the U.S. government a significant stake in the low-cost carrier, according to the Wall Street Journal.