Shares of Spirit Airlines plummeted 74% after reports suggested the carrier could be preparing to cease operations following stalled bailout negotiations with the US government.
The airline's stock crashed as rival airline stocks rallied sharply, with JetBlue Airways and Frontier Airlines climbing as investors reacted.
The sell-off followed reports that Spirit had run out of cash and was struggling to secure financing needed to continue operations.
Uncertainty surrounding the negotiations triggered panic among investors, sending Spirit shares sharply lower.
The Trump administration had discussed bailout possibilities, with President Donald Trump acknowledging Spirit's financial troubles and suggesting the government could 'sell it for a profit' when oil prices come down.
Spirit's financial struggles intensified after a federal judge blocked its proposed $3.8 billion merger with JetBlue in 2024 on antitrust grounds.
The carrier's finances have been strained by rising oil prices and increased jet fuel costs.
