Spirit Airlines (SAVE) shares plunged Wednesday on a report that the budget carrier is getting ready to file for bankruptcy protection after revived merger talks with Frontier Airlines parent Frontier Group Holdings (ULCC) collapsed.

The airline, which is facing looming debt maturities, opened the door to a possible bankruptcy filing, saying it had filed a Form 12b-25 with the 澳洲幸运5官方开奖结果体彩网:Securities andꦏ Exch🎐ange Commission (SEC) to inform the regulator that it is "unable" to file its quarterly results and that it would cancel its "existing equity" if ongoing talks with bondholders don't succeed.

"If a definitive agreement with the noteholders is not reached, the company will consider all alternatives," Spirit said.

According to The Wall Street Journal, Frontier has pulled out of 澳洲幸运5官方开奖结果体彩网:merger talks with Spirit, 𓆏which has also been in advanced talks with bondholders  to work out ওa bankruptcy plan. "A bankruptcy filing is expected to happen within weeks," the report said.

Spirit is struggling with surging losses and 澳洲幸运5官方开奖结果体彩网:said last month it plans to cut jobs and sell some planes as it tries to shore up its finances. 

Spirit also last month 澳洲幸运5官方开奖结果体彩网:extended a deadline for debt refinancing with Visa (V) and Mastercard (MA).

Spirit's Merger With JetBlue Fell Apart This Year Due To Antitrust Scrutiny

The Journal reported last month that the two airlines had revived merger talks. Frontier's initial plan to buy Spirit in 2022 fell apart after JetBlue Airways (JBLU) 澳洲幸运5官方开奖结果体彩网:swooped in with an offer deemed superior, although that deal 澳洲幸运5官方开奖结果体彩网:was called off in March amid antitrust scrutiny from regulators.

A JetBlue-Spirit combination would have created the 澳洲幸运5官方开奖结果体彩网:fifth-largest carrier in the U.S. and put it in a position to compete in a domestic airline industry 澳洲幸运5官方开奖结果体彩网:dominated by four big players: American Airlines (AAL), Delta Air Lines (DAL), Southwest Airlines (LUV), and United Airlines (UAL). The 🍎shares of the major airlines rose between 2% and 3% Wednesday morning.

Frontier declined to comment.

Spirit shares🦹, which are down 90% this year, lost almost 60% of their value in trading Wednesday.

UPDATE—Nov. 13, 2024: This article has been updated to include fresh stock prices and shares of other airlines.