Spirit Airlines is preparing to shutter operations after a $500 million lifeline from the federal government fell through, sources familiar with the plans told The Wall Street Journal and The New York Times.

The budget airline had been hopeful the federal government might provide a last-minute rescue deal after President Donald Trump suggested a taxpayer takeover of the company last week.

“I think I’d love somebody to buy Spirit, as an example. You know, Spirit’s in trouble,” the president said in an interview with CNBC’s “Squawk Box.” “Maybe the federal government should help that one out.”

However, disagreements within the Trump administration and uncertainty from some of the airline’s bondholders have prevented the deal from going through, the Journal reported.

Several Republicans spoke out against the suggestion that the federal government could take over the budget airline.

“This is an absolutely TERRIBLE idea,” Sen. Ted Cruz (R-Texas) wrote on social media, adding that “the government doesn’t know a damn thing about running a failed budget airline.”

Transportation Secretary Sean Duffy also expressed concern about Trump’s idea.

“What we don’t want to do is put good money after bad, and there’s been a lot of money thrown at Spirit, and they haven’t found their way into profitability. And so would we just forestall the inevitable and then own that?” he said in an interview with Reuters. “We can’t make dumb investments.”

Now, Spirit is reportedly working to liquidate its relatively young aircraft fleet and cease operations after filing for bankruptcy for a second time earlier this year.

The airline ― which grew in popularity for its cheap tickets but was notorious for applying additional fees to routine flight operations like printing boarding passes and selecting seats ― has faced increasing losses in recent years amid the COVID-19 pandemic and stiff competition from other airlines. A recent spike in jet fuel prices due to the war with Iran has also hindered the airline’s operations.

The company’s footprint has shrunk significantly in recent years, The New York Times reported. The airline saw 12,000 flights in April, down from 25,000 flights two years prior, according to statistics from aviation data firm Cirium.

It wasn’t immediately clear when the company would cease operations and how the reported shutter would affect customers with future flights.

A spokesperson for Spirit declined to comment to HuffPost.

When asked about the status of a potential Spirit deal Friday, Trump told reporters: “We’ll have something for you today or tomorrow,” adding that he’d like to help the airline but “it’s America first.”

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