As sky-high jet fuel prices continue to put intense pressure on airlines’ bottom line, budget airlines are looking for a way to make ends meet. As the federal government weighs a $500 million bailout for Spirit Airlines, more budget airlines are now turning to the Trump administration to stay above the clouds.
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, according to the Wall Street Journal. And just like the potential Spirit offer, the airlines will issue government warrants that could convert into equity stakes in the companies.
