Shares of Spirit Airlines collapsed Friday after reports suggested the struggling carrier could be preparing to cease operations following stalled bailout negotiations with the US government. The airline’s stock plunged as much as 74% after the Wall Street Journal reported that Spirit Aviation Holdings Inc. was moving toward a potential shutdown scenario after rescue discussions failed. Spirit Airlines airplanes sit parked at Fort Lauderdale – Hollywood International Airport, in Fort Lauderdale (REUTERS) At the same time, rival airline stocks rallied sharply, with JetBlue Airways and Frontier Airlines both climbing as investors reacted. Read More: Spirit Airlines shutdown row: Why JetBlue and Frontier stocks are surging amid $500M bombshell report Why Spirit Airlines stock is crashing The latest sell-off followed reports that Spirit had run out of cash and was struggling to secure financing needed to continue operations. According to the Wall Street Journal, the airline faced mounting difficulties negotiating with creditors while also attempting to finalize a government-backed rescue package. Bloomberg previously reported that talks involving a possible $500 million federal bailout had stalled, with …