NEW YORK, NY – A fresh wave of volatility swept through the U.S. aviation sector on Friday, as major airline stocks climbed sharply following news that discount carrier Spirit Airlines is moving toward a permanent shutdown, after hopes for a federal rescue package collapsed. Last week, optimism around a potential bailout for Spirit surged after former President Donald Trump signaled he was open to supporting a government-backed relief plan. The proposal was framed as a way to save the struggling airline and protect thousands of existing jobs tied to the company. However, reporting from *The Wall Street Journal* on Friday upended those expectations, revealing the proposed $500 million lifeline faced significant pushback from multiple factions within the Trump administration as well as from a group of Spirit’s major bondholders. Citing sources familiar with the carrier’s internal planning, the Journal reported Spirit has already begun preparations to cease all operations, though an exact timeline for the shutdown remains undetermined. Within hours of the report’s release, shares of Spirit’s major competitors posted notable gains. Rival low-cost carrier JetBlue saw its share price jump by 8.4 percent, while legacy carriers including American Airlines, Delta Air Lines, United Airlines, and Southwest Airlines all recorded gains of more than 3 percent each. Spirit’s financial troubles stretch back months. Just over a month before Friday’s report, on February 24, the airline announced it had reached a preliminary agreement in principle to restructure its outstanding debt with its creditor group, and the company signaled it expected to complete its bankruptcy exit process by the start of summer. But that progress was quickly derailed by a sudden, sharp spike in global fuel prices, triggered by the outbreak of the U.S.-Israeli military campaign against Iran that began just days after the debt restructuring deal was announced. That unforeseen cost increase delivered a final blow to the already cash-strapped carrier, pushing it closer to total collapse. Market analysts note that a full shutdown of Spirit would reduce competitive pressure on ticket pricing across the U.S. domestic market, a dynamic that lifted investor sentiment for competing airlines and drove Friday’s share price gains.