US low-cost airlines are seeking $2.5 billion in aid

The CEOs of several low-cost airlines met with Transport Minister Sean Duffy and the head of the US Federal Aviation Administration (FAA), Bryan Bedford, on Tuesday last week to discuss the plan. The Wall Street Journal had previously reported on it.

Additional costs for kerosene expected

The requested sum of 2.5 billion dollars results from the expected additional costs for kerosene in the current year, said the insiders. Fuel prices have roughly doubled as a result of the war against Iran launched by the USA. This puts massive pressure on weaker airlines. The White House and Frontier did not immediately respond to requests for comment. An Avelo spokesman declined to comment on the report but stressed the importance of a healthy industry in times of high fuel costs.

The administration of US President Donald Trump is close to a rescue agreement for the insolvent airline Spirit Airlines. This could include state-backed financing of up to $500 million, for which the state would receive warrants for 90 percent of the equity in return. During the corona pandemic, the US Treasury Department received warrants from major airlines as part of a $54 billion aid program. However, their sale ultimately only brought in $556.7 million.