The Association of Value Airlines (AVA), which includes low-cost carriers such as Frontier Airlines, Allegiant Air, Spirit Airlines, Sun Country Airlines, and Avelo Airlines, is seeking USD2.5 billion in United States government assistance in exchange for warrants that could be converted into equity stakes in the companies, The Wall Street Journal reported citing people familiar with the matter.

The group reportedly came up with the USD2.5 billion figure by calculating how much more they estimate spending on jet fuel in 2026, compared with previous forecasts. The estimate is based on jet fuel prices remaining above USD4 a gallon on average for the rest of the year.

The proposal is a significant escalation from one made earlier in April, in which they requested a temporary pause on certain taxes on tickets.

Following the US-Israeli attack on Iran and the subsequent closure of the Strait of Hormuz, oil prices have soared globally, heavily impacting airlines’ finances. In the US, Spirit Airlines, one of AVA’s members and currently under Chapter 11 bankruptcy procedure, is on the brink of liquidation and is reportedly negotiating with the government for a USD500 million bailout that could give the Trump administration the option of owning up to 90% of the carrier.

The Wall Street Journal elaborated that conversations about a potential economic aid package are expected to continue over the coming days. The carriers are hopeful, given President Donald Trump’s recent remarks saying he likes “having a lot of airlines, so it is competitive.”

In a statement to ch-aviation, Avelo said it agrees that a healthy airline industry with strong competition is important to the US economy, especially during this period of high fuel prices.

ch-aviation also reached out to AVA members for comment on the matter. Frontier deferred comment to AVA, Sun Country declined, and the other airlines were not immediately available.