The Wall Street Journal reports that bankrupt Spirit Airlines is preparing to wind down operations after failing to secure a $500 million lifeline from the Trump administration.

WSJ reports:

The ailing budget airline had been hoping to finalize a $500 million lifeline from the government before running out of cash. The discount carrier hasn't been able to get sufficient support between certain bondholders and the government to secure the funding to keep it in business, people familiar with the matter said.

News last week raised hopes that Spirit would secure a rescue deal of up to $500 million from the Trump administration, which could have left the federal government with 90% control.

A reporter asked Trump last week: "Is the government going to buy a stake in Spirit Airlines?"

The president responded: "So we are looking at Spirit. It's in bankruptcy court. And we're looking, if we could get it for the right price..."

Polymarket odds:

US takes a stake in Spirit Airlines by May 31?

Spirit Airlines shutdown/liquidation by May 31?