India, May 1 -- Shares of JetBlue Airways and Frontier Airlines surged Friday after reports that rival carrier Spirit Airlines could be preparing to halt operations following failed bailout discussions. By around 11 AM ET, JetBlue stock had climbed 7.4%, while Frontier rose 8.8% as investors reacted to growing uncertainty surrounding Spirit's future.

The jump came after a Wall Street Journal report stated that Spirit Airlines' anticipated rescue agreement with the US government had collapsed. According to the report, Spirit's bondholders did not back the proposed restructuring plan, creating major uncertainty around the struggling airline's ability to continue operating.

The Wall Street Journal further reported that Spirit Aviation Hold...