Budget Airlines Are in Talks With Trump Administration Over $2.5 Billion Bailout
Photo Credit: BURBANK, CALIFORNIA - APRIL 07 The Avelo aircraft is seen at Hollywood Burbank Airport on April 07, 2021 in Burbank, California. Photo by Joe ScarniciGetty Images for Avelo Avelo Airlines / Joe Scarnici/Getty Images
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Budget airlines are turning to the Trump administration for aid as high fuel costs threaten their ability to stay in business.
A group of ultra-low-cost carriers are in discussions with the Trump administration about receiving $2.5 billion in aid from the government due to high fuel costs, according to a person familiar with the matter who was not authorized to speak publicly.
The carriers, which include Frontier Airlines and Avelo Airlines, met with Transportation Secretary Sean Duffy, Federal Aviation Administration chief Bryan Bedford, and DOT Deputy Assistant Secretary Daniel Edwards on April 21 to discuss the possible bailout. The discussions centered around surging fuel prices, according to the source.
The average price of jet fuel is at $4.19 a gallon as of Monday, according to data from Argus Media published by Airlines for America.
Ultra-low-cost carriers are expecting fuel to remain above $4 a gallon, which is why they are asking the Trump administration for $2.5 billion, according to the source. The White House is currently reviewing the proposal.&
