A group of U.S. budget airlines, including Frontier Airlines and Avelo Airlines, is requesting $2.5 billion in federal assistance in exchange for warrants that could later convert into equity stakes in the companies.

Chief executives from several low-cost carriers traveled to Washington last Tuesday for meetings with Transportation Secretary Sean Duffy and Federal Aviation Administration chief Bryan Bedford. Discussions over a potential aid package are expected to continue in the coming days, the report said.

The proposed $2.5 billion figure is based on projected increases in jet fuel costs, with the airlines estimating significantly higher spending this year than in earlier forecasts. Those projections assume average jet fuel prices remain above $4 per gallon.

The request comes amid financial pressure on lower-cost carriers, which have been hit by elevated operating expenses. The companies have linked the strain in part to broader global energy market disruptions, including volatility tied to geopolitical tensions that have driven up fuel prices and compressed industry margins.

The White House, Frontier Airlines, and Avelo Airlines did not immediately respond to requests for comment.

The proposal also highlights a broader policy precedent, recalling pandemic-era federal aid to the airline industry, when the U.S. Treasury received equity warrants in exchange for financial support under a $54 billion relief program. In that case, the government ultimately recovered a fraction of the anticipated value from those holdings.

The request also comes as the Trump administration approaches a separate potential assistance arrangement for Spirit Airlines, which could include up to $500 million in government-backed financing aimed at sustaining operations through bankruptcy proceedings.