Budget Airlines Are in Trouble. What’s the Outlook for a $2.5 Billion Bailout?
Photo Credit: Department of Transportation Secretary Sean Duffy at Newark Liberty International Airport. October 6, 2025. Department of Transporation
Skift Take
Transportation Secretary Sean Duffy appeared to dismiss the idea that other budget carriers might need a bailout from the government, hours after Spirit said it would start winding down operations.
After it became clear that Spirit Airlines would face liquidation, the outcome of a broader bailout for budget carriers became uncertain.
Transportation Secretary Sean Duffy said Saturday he didn’t believe such a bailout was necessary right now.
“I would say that at this point I don't think it's necessary,” Duffy said, speaking at Newark airport. “They do have access to cash if they want to come to the U.S. government, we would be a lender of last resort. If they can find dollars in the private markets, I think that's better for them.”
Budget airlines, represented by industry trade group the Association of Value Airlines, started pitching the Trump administration in April for a $2.5 billion bailout to offset rising fuel costs. The money would be used exclusively for fuel costs, and under the terms being discussed
