Spirit Airlines was preparing to halt operations early Saturday after efforts to secure a last-minute rescue failed to produce an agreement according to reporting by Reuters.

The bankrupt ultra-low-cost carrier was expected to stop flying at 3 a.m. Saturday, people familiar with the discussions told Reuters late Friday. The move would mark a dramatic escalation in the company’s financial crisis and creates questions for passengers, employees, and creditors of the airline.

According to Reuters reporting, Spirit’s board concluded a meeting without reaching a deal that would keep the airline operating. That outcome left the company on the verge of an abrupt shutdown as pressure mounted around its restructuring options. A suspension of service would represent one of the most severe developments yet for the carrier, which has been struggling under bankruptcy while trying to stabilize its future. An overnight stoppage would threaten broad disruption across routes heavily used by budget travelers.

The airline appeared to cancel most flights on the west coast of the United States around 7 p.m. Pacific time.

This is a breaking news story. Information will be updated as details become available.