Report: Spirit Airlines Prepares to Shut Down

Budget carrier Spirit Airlines is preparing to close its doors, The Wall Street Journal reported Friday.

According to the Journal, Spirit was unable to reach a deal for emergency aid from the Trump administration that also satisfied its creditors. It was not immediately clear Friday if the talks are over, or if the various parties might return to the negotiating table.

If Spirit does shut down, thousands of employees could lose their jobs, and ticket holders would almost certainly see their bookings automatically canceled.

Spirit has been in bankruptcy protection since August, but it entered a new phase of fiscal turmoil in March as jet fuel prices surged. Amid reports that executives were looking at liquidation, the airline started negotiations with the White House, and President Donald Trump told reporters that he was confident that Spirit could be saved.

Over the last few days, however, reports emerged suggesting that some of Spirit’s creditors were unwilling to accept the administration’s bailout, which would have given the federal government the right to stakes in the airline. The investors were reportedly worried that U.S. intervention could affect the value of their claims.

Trump said Friday that Spirit has his team’s final offer. More information could be available later in the day, the president added.