Bankrupt discount carrier Spirit Airlines is preparing to cease operations around 9 a.m. Israel time on Saturday after its board failed to reach an agreement on a rescue plan, according to people familiar with the discussions. The shutdown would mark the first airline collapse in the United States in two decades and is expected to result in thousands of job losses.

The failure comes after a sharp rise in jet fuel prices linked to the ongoing war with Iran doubled costs in just two months, derailing Spirit’s restructuring plans. The airline had based its turnaround strategy on significantly lower fuel prices, but costs surged far beyond projections, undermining efforts to exit bankruptcy.

President Donald Trump had proposed 500 million dollars in financing in exchange for a large equity stake, despite opposition from some advisers and lawmakers. Transportation Secretary Sean Duffy said efforts to find a buyer were unsuccessful. Other airlines, including United Airlines, American Airlines, Frontier Airlines, and JetBlue Airways, said they were preparing to assist stranded passengers if Spirit halts flights.

Spirit plans an orderly wind-down, including stopping flights, repositioning aircraft, and sending crews home. At its peak, the airline accounted for about five percent of flights in the United States and was known for keeping fares low in competitive markets.