Spirit Airlines Faces Grounded Fate Amid Bailout Challenges

Bankrupt discount carrier Spirit Airlines is preparing to cease operations after failing to secure a bailout plan with certain bondholders and the U.S. government, according to a Friday report by the Wall Street Journal.

Last month, President Donald Trump indicated that his administration was considering acquiring the struggling airline at the "right price." Sources revealed a proposal for $500 million in financing in exchange for warrants equivalent to 90% of Spirit's equity.

Internal disagreements within the Trump administration on funding the bailout were noted, with not all bondholders in agreement with the funding terms. A rescue hearing set for April 30 was postponed amid ongoing discussions, as Spirit continues to operate normally.

(With inputs from agencies.)