Budget Airlines Ask US Government for $2.5 Billion in Relief (4)

Budget airlines are banding together to ask President Donald Trump’s administration for $2.5 billion to help combat increasing jet fuel prices in exchange for warrants that would give the US government the right to purchase equity stakes in the carriers, people familiar with the discussions said.

The Association of Value Airlines, which represents low-cost carriers including Frontier Group Holdings Inc. and Avelo Airlines Inc., is leading the talks on behalf of the airlines, said the people, who spoke on condition of anonymity because the matter is confidential.

The $2.5 billion figure was calculated using the expected fuel consumption ...