The war with Iran is driving energy costs to levels not seen in years, and that surge is now rippling through global air travel.

Several U.S. budget airlines are asking the federal government for a $2.5 billion lifeline, warning that soaring jet fuel prices are putting pressure on their business models and threatening thousands of jobs, along with the affordable

fares that millions of travelers depend on. The appeal comes as Spirit Airlines, faces a potential

bankruptcy, and is negotiating separately for a $500 million government bailout, one that could

leave the Trump administration with a significant ownership stake. We're joined now by David Shepardson, Aviation, Transportation, and Technology correspondent at Reuters.

Thanks for being here.

Thanks, Jeff.

So as we mentioned, these low-cost carriers are asking for $2.5 billion a bailout.

What does that really signal about the health of the sector?

Is this just about the cost of fuel, or is this an issue about

the deeper business model, deeper problems? I really do think it's about the fuel, right? So as you

mentioned, jet fuel prices have doubled. Everybody is suffering, not just the budget guys,

but the mainline carriers, American Delta, United Southwest. They're all struggling. They're all

being forced to raise prices, raise baggage fees, they're all struggling. They're all being

forced to raise prices, raise baggage fees, and deal with this. But the budget guys are in a

much, are at a tougher spot in part because they've got less room to raise prices. Their

consumers are much more price sensitive, so it's harder to raise fares and keep those

planes filled. And they're also asking Congress to waive the fuel

taxes, the surcharge that you pay on your airline ticket. So between that and $200 billion,

it's a big ask. And right now it doesn't appear Congress, the administration, are going to do it now.

But depending how long these fuel prices go on, if we see some of these budget guys get in trouble or file for bankruptcy, then I do think Congress might take a more realistic look. How unusual is a request like this? The airline's got a, what was it, a $25 billion bailout back in 2020. Of course, it was a once-in-a-generation pandemic, we hope once-in-a-generation. I mean, how does this compare? So I do think the rationalism

is somewhat similar, although you're right, the COVID pandemic was much different, right? Because

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