Spirit Airlines is preparing to shut down operations after negotiations over a $500 million government bailout package have stalled, according to multiple reports. The low-cost carrier has been struggling financially and appeared close to running out of cash.

The bailout negotiations faltered when bondholders rejected the terms of the proposed rescue deal, according to sources familiar with the matter. The airline had been seeking the federal aid as a lifeline to continue operations amid ongoing financial difficulties.

President Trump acknowledged the situation on Friday, telling reporters at the White House that the administration was "looking at" a deal for Spirit Airlines. Trump said the government had given Spirit a "final proposal" for the bailout, though he indicated any assistance would only proceed under favorable terms for the government.

Spirit Airlines has faced mounting challenges in recent years, including struggles to increase demand following the pandemic and rising jet fuel costs. The discount carrier has previously gone through two bankruptcy proceedings as it attempted to maintain operations in the competitive airline industry.

The potential shutdown could occur as soon as Saturday, leaving passengers with booked flights facing uncertainty about travel plans. The airline's financial troubles highlight broader challenges facing budget carriers in the current aviation market, where rising operational costs have pressured profit margins.

If Spirit ceases operations, it would mark the end of one of the most prominent ultra-low-cost carriers in the United States, potentially affecting thousands of passengers and employees across the airline's network.