Spirit Airlines is on the brink of shutting down after a last-ditch effort to secure funding collapsed, The Wall Street Journal reported Friday.

The ultra-low-cost carrier is running out of cash and has failed to line up enough financial backing to keep operations going.

A proposed $500 million rescue package — which included a government-supported component — fell apart as creditors balked, leaving the airline with few remaining options.

That breakdown now puts Spirit in a precarious position, with liquidation or a full operational shutdown increasingly likely.

The potential collapse comes after a prolonged stretch of financial strain.

Spirit has filed for bankruptcy twice since 2024 and has struggled under the weight of rising fuel costs and heavy debt loads, even as it tried to maintain its ultra-low-fare model.

Its disappearance could ripple beyond the airline itself. Analysts warn that without Spirit’s aggressive discount pricing in the market, airfares could move higher, particularly on routes where the carrier has historically undercut competitors.