Donald Trump · White House · US Congress · Federal Reserve (FED) · Fortune Technology
“I’d love somebody to buy Spirit,” Trump confirmed April 21 ’s Squawk Box, adding
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The Trump administration is considering invoking the Defense Production Act to potentially bail the airline out, .
Key facts
- In its bankruptcy restructuring plan, Spirit Airlines planned to spend $2.24 per gallon in 2026 and $2.14 in 2027, according to a March filing with the Securities and Exchange Commission
- During the COVID-19 pandemic, the government gave U.S. airlines $54 billion in grants and loans to avoid layoffs
- The request assumes that jet fuel prices will remain above $4 a gallon on average for the rest of the year, which the airlines predict will cost an additional $2.5 billion
- 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
Summary
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. 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, . The request assumes that jet fuel prices will remain above $4 a gallon on average for the rest of the year, which the airlines predict will cost an additional $2.5 billion. In its bankruptcy restructuring plan, Spirit Airlines planned to spend $2.24 per gallon in 2026 and $2.14 in 2027, according to a March filing with the Securities and Exchange Commission. The details of the potential aid package are still under discussion, and the airlines’ request was sent to the White House, which did not immediately respond to Fortune’ s request for comment.