The United States Congress and lawmakers from both sides of the US political divide will be called upon to get involved with a $2.5-billion bailout request from budget airlines, according to US Transportation Secretary Sean Duffy.
The demand for aid from low-cost carriers comes amid hostilities between the US, Israel, and that have caused jet fuel prices to rocket, putting financial pressure on firms like Spirit Airlines, which were already on a knife-edge.
Following a White House meeting with government officials last week, the Association of Value Airlines has confirmed it is looking to the Trump administration to support them with a $2.5-billion “liquidity pool” dedicated to helping airlines manage the soaring oil prices “as a necessary and targeted measure to stabilize operations and keep airfares affordable during this period of volatility.”
But Duffy, who has already cast doubt on the idea of a $500 million rescue package for troubled Spirit Airlines, also questioned the notion of the federal government stepping up to fill the liquidity fund.
“I don’t have that money – can’t just pull it out of the couch cushions. There would have to be a lot of government engagement and a bipartisan effort to find the funds for them. You can’t snap your fingers,” Duffy told press, adding: “Congress would have to get involved as well with that kind of number.”
It would be an unusual situation for US politicians to intervene in the free market in this way. While Trump has mooted the possibility of buying out Spirit, to save American jobs, critics and lawmakers on both sides of the house are notoriously reluctant to use US taxpayer’s money to save failing enterprises. For Republicans, it would look suspiciously like nationalisation; for Democrats, there are better things taxpayer funding can be spent on.
A precedent however was set during COVID, when airlines received help to the tune of $54 billion which was explained as a way to prevent the collapse of an economic system. But commentators like Lindsay Granger in The Hill note that even in the current crisis, larger airlines are coping by “finding ways to offset costs – raising fares, adjusting operations – and demand hasn’t collapsed.”
global aviation fuel crisis is severe. The US-Israeli war with Iran has blockaded the Strait of Hormuz, carrying ~20% of world oil and 25-30% of jet fuel—doubling prices to $150-200/barrel and triggering physical shortages. Europe has ~6 weeks of stocks left; airlines (United,…
— Pravesh Jain (@PRAVESHPARAS) April 25, 2026
In Europe too, airlines have had to ground planes, adjust schedules, and find new destinations to cater to customer demand that has changed since the threat to Middle Eastern countries became apparent. Lobbying conversations have centred around how long oil supplies might last if the blockade on the Strait of Hormuz continues, and on whether to tax excess oil company profits in order to fund resilience strategies and the green transition. Passenger rights amid increasing cancellations are also a topic of discussion. The threat to smaller, regional airports (which hold fewer oil supplies, and could be deprioritised by airlines due to the crisis) and the economies they support, has been acknowledged—but any bailout for the aviation sector is almost as a hard sell on the eastern side of the Atlantic, as it is in the States.
