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Trump Admin Faces Budget Airlines' $2.5B Fuel Bailout Request Amid Iran Conflict

New York Times Business •
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Budget airlines are pushing the Trump administration for a $2.5 billion fuel cost relief package as jet prices hit $4.10 per gallon—an 88% spike since last year. The Association of Value Airlines, representing carriers like Frontier and Allegiant, argues the aid is necessary to stabilize operations and keep fares affordable amid the U.S.-Israel-Iran conflict. Meanwhile, Spirit Airlines, already in its second bankruptcy in two years, seeks a $500 million government loan with potential equity stakes, raising concerns about taxpayer exposure.