The money would be used exclusively to offset rising fuel costs, representatives said.

Zach Vasile

A trade association representing five low-cost U.S. airlines confirmed Monday that it is seeking $2.5 billion in assistance from the federal government.

In a statement, the Association of Value Airlines said it has asked the Trump administration to create a “liquidity pool” that would be used only to help offset “incremental fuel costs.”

The association cited as a precedent the federal aid packages made available to airlines during the COVID-19 pandemic, when virtually all commercial air traffic worldwide was temporarily suspended.

The Wall Street Journal reported Sunday that a group of budget airlines had asked the U.S. Department of Transportation for $2.5 billion in emergency assistance, but the exact parameters of the program, and the airlines involved, were not immediately clear. The Journal report also suggested that the federal government would receive warrants for equity stakes in the carriers it bails out, and the AVA confirmed that warrants could play a role in the rescue.

According to its website, the organization’s “full members” are Allegiant, Avelo, Frontier, Spirit, and Sun Country.

Jet fuel prices have nearly doubled since late February, putting intense pressure on budget airlines, which must carefully manage and contain every expense to stay financially viable.

In its statement, the AVA said its members keep the airline industry competitive and help reduce fares.

Separately, Spirit is pursuing a $500 million bailout from the administration. The carrier is currently in bankruptcy protection, and insiders said earlier this month that if Spirit’s financial position is not stabilized soon, liquidation could be on the table.