One of America’s most recognizable budget airlines may be just days away from collapse.

Spirit Airlines is now facing the real possibility of liquidation, as a perfect storm of rising fuel costs and financial instability threatens to bring the airline to an abrupt end. Discussions with creditors have intensified in recent days, with liquidation emerging as a serious and maybe most viable option, a decision potentially coming as early as this week.

The airline, which has already been struggling through bankruptcy proceedings, is now being hit hard by rising fuel prices, mostly driven by the war involving the U.S., Israel, and Iran.

Fuel prices have more than doubled in recent weeks, creating a strong impact on airlines across the globe and especially on low cost carriers like Spirit, which operate on razor thin margins and have limited ability to raise ticket prices.

Spirit had previously been working toward a restructuring plan aimed at exiting bankruptcy, but the involved lenders are now worried about whether the plan is still possible under current economic conditions. They have warned that if fuel prices remain elevated, the airline’s costs could grow by hundreds of millions of dollars, way more than the company has in available cash, which would make survival unlikely.

Behind the scenes, creditors are considering drastic steps, including seizing assets or forcing a full shutdown of operations immediately. The collapse would mark a stunning fall for the airline, which once thrived on its low cost model and became one of the largest discount carriers in North America. Now, that very model, built on tight margins, will be its downfall.

For American travelers, the implications will be felt immediately, with route cancellations, reduced competition, and higher ticket prices across the board.