U.S. Transportation Secretary Sean Duffy said Congress would need to play a central role in any move to grant $2.5 billion in government aid requested by budget airlines grappling with soaring jet fuel costs during the ongoing U.S.-Israeli war involving Iran. Speaking to reporters, Duffy emphasized that such funding could not be allocated unilaterally, noting that a bipartisan effort and broader government engagement would be required to secure the funds.
The Association of Value Airlines has formally appealed to the administration of Donald Trump to establish a $2.5 billion liquidity pool aimed specifically at offsetting rising fuel expenses. The group described the proposal as a targeted measure to stabilize airline operations and maintain affordable airfares during a period of heightened volatility. Duffy acknowledged that discussions are ongoing, adding that officials would review the airlines’ detailed proposals before making any decisions.
Meanwhile, industry leaders warn that the impact of high fuel prices is widespread. Bob Jordan, chief executive of Southwest Airlines, said all carriers are feeling the strain, stressing the importance of building resilient business models to withstand such shocks. Duffy has also expressed caution over separate proposals, including a $500 million plan to assist Spirit Airlines in exiting bankruptcy, signaling a careful approach to federal support for the aviation sector.
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