April 26 (Reuters) – A group of U.S. budget airlines, including Frontier and Avelo, is seeking $2.5 billion in U.S. government ‌assistance in exchange for warrants that could convert into equity ‌stakes in the companies, the Wall Street Journal reported on Sunday.

The chief executives ​of several low-cost carriers were in Washington last Tuesday to meet with Transportation Secretary Sean Duffy and Federal Aviation Administration chief Bryan Bedford, the report said, adding that discussions regarding a potential aid package are ‌expected to continue in ⁠the coming days.

The budget airline group arrived at the $2.5 billion figure by calculating how much more they ⁠estimate they will spend on jet fuel this year than in earlier forecasts, assuming jet fuel prices remain above $4 a gallon on average, ​according to ​the WSJ report.

Reuters could not immediately ​verify the report. The White ‌House, Frontier, and Avelo did not respond to a request for comment.

The pitch underscores one of the unintended consequences of the Iran war launched by Washington: a surge in jet fuel prices that has roughly doubled costs, squeezing margins and pushing weaker airlines closer ‌to the brink.

The request from budget ​airlines comes as the Trump administration nears ​a deal to rescue ​low-cost carrier Spirit Airlines, which could include up to $500 ‌million in government-backed financing to ​help it keep ​operating through bankruptcy.

During the pandemic, the U.S. Treasury received warrants in major airlines in exchange for aid under a $54 billion support ​program. It ultimately ‌collected just $556.7 million from selling them, with many proving to ​have little value.

(Reporting by Chandni Shah in Bengaluru; Editing ​by Sumana Nandy and Rashmi Aich)