A coalition of U.S. budget carriers, including Frontier and Avelo, requested $2.5 billion in federal aid via equity‑linked warrants.
The aid amount reflects projected extra jet‑fuel costs, assuming prices stay above $4 per gallon for the rest of 2026.
Spirit Airlines is in talks for up to $500 million assistance, also in exchange for warrants granting a significant equity stake.
CEOs of several budget airlines met top U.S. officials in Washington as jet‑fuel price spikes from the U.S.–Israel‑Iran conflict pressure margins.