Spirit Airlines had been in talks with the government on a deal that would provide cash in exchange for a 90% stake in the company|Tomas Del Coro|CC BY-SA 4.0

Spirit Airlines is preparing to shut down after failing to secure a $500 million government-backed lifeline.

The budget carrier has not received sufficient support from bondholders and the Trump administration to secure the funding needed to stay afloat.

The airline had been in talks with the government on a deal that would provide cash in exchange for a 90% stake in the company.

The airline had already been suffering, and is now under continued pressure from rising fuel costs.