Investing.com -- Spirit Airlines is preparing to cease operations after failing to secure a $500 million government lifeline, according to a report Friday from the Wall Street Journal, citing people familiar with the matter.

The budget carrier was unable to obtain sufficient support from certain bondholders and the government to secure the funding needed to continue operations before running out of cash, the people said.

Shares of Spirit Airlines fell 75% on Friday following the news. Rival carriers saw their stock prices climb, with Southwest Airlines (NYSE: LUV) rising 3%, JetBlue Airways (NASDAQ: JBLU) gaining 6%, and Frontier Group (NASDAQ: ULCC) advancing 8%. Delta, American, and United shares also gained.