Spirit Airlines is preparing to file for bankruptcy protection after merger talks with Frontier Airlines broke down, the Wall Street Journal reported, citing people familiar with the matter.
The ultra-low cost carrier is in advanced discussions with bondholders to hammer out a bankruptcy plan that would have support from a majority of creditors, the report said.
Spirit is preparing a bankruptcy filing within weeks, the report added.
Spirit did not immediately respond to a Reuters request for comment.
Shares plummeted 35% to $2.07 in after-hours trading.