A coalition of budget airlines, including Frontier Airlines and Avelo Airlines, is reportedly requesting $2.5 billion in federal assistance due to escalating jet fuel prices, which are projected to stay above $4 per gallon for the remainder of the year. The proposed assistance could be structured as stock warrants that convert into equity stakes in the airlines, reflecting a strategy to bolster their financial stability amid rising operational costs. Discussions with federal officials, including Transportation Secretary Sean Duffy, are expected to continue. The airlines are also pushing for Congress to suspend the 7.5% federal excise tax on airline tickets and the $5.30 per segment tax, which they estimate could alleviate about one-third of their increased fuel costs. This request comes as the Trump administration considers a separate proposal to provide $500 million in loans to Spirit Airlines, allowing the government to acquire significant equity stakes. Rising fuel costs have complicated Spirit's recovery from its second Chapter 11 bankruptcy filing, highlighting the challenges facing the airline industry during this period.