Following President Trump’s recent statement pushing for Spirit Airlines to receive help, several other budget airlines turned to the Trump administration to seek aid as the war in the Middle East continues.

As jet fuel prices soar, carriers like Frontier Airlines and Avelo Airlines made statements asking for money to cover costs. According to The Wall Street Journal, Frontier and Avelo allegedly requested $2.5 billion in government assistance. This request only aligns if the cost of oil stays above $4 a gallon. The $2.5 billion is an estimate of jet fuel costs for this year in relation to earlier forecasts. But if jet fuel drops below $4 and crude pulls bag, the urgency for this financial aid will diminish, too. While the proposition is still in talks, the airlines’ request was sent to the White House.

Meanwhile, Spirit Airlines faces a potential bailout as it soon emerges from its second bankruptcy in two years. Since filing for bankruptcy protection in August 2025 for the second time in less than one year, the airline has struggled. Spirit is slated to come out of bankruptcy by mid-2026 after cutting service and selling aircraft. But recent increases in fuel price greatly affected the budget airline. The proposal currently awaits review. If rejected, the budget airline industry in the United States could face consolidation. If the proposal is approved, however, a short-term equity catalyst is expected, according to Yahoo! Finance.

Other airlines facing negative impacts from rising jet fuel costs include Southwest Airlines and Allegiant Travel Company. Southwest Airlines is “highly susceptible to sustained high jet fuel prices due to thinner margins and price-sensitive customers,” while Allegiant is “significantly impacted by rising jet fuel costs, which erode its thin operating margins.”

United Airlines, Delta Air Lines and American Airlines, meanwhile, experience neutral impacts. Although facing higher fuel costs, United Airlines can potentially gain market share if budget airlines struggle. Delta and American, like United, could also benefit from low-cost carrier distress.

The U.S. government may also gain an equity stake in airlines if proposed aid is approved. But the risk of the bailout cost and political backlash remains a possibility. 

Do you think budget U.S. airlines should be offered a bailout amid rising jet fuel prices? Email us at letters@globaltravelerusa.com. Please include your full name and location.