The shares of Spirit Airlines Inc. plummeted by more than 60% on Wednesday after a potential merger with Frontier Airlines fell through, leading the company to prepare to file for bankruptcy, according to the Wall Street Journal.
The American airline was previously reported to be nearing a deal to merge with Frontier Airlines. The two companies have considered a potential merger multiple times since 2016 but have not closed an agreement. According to the latest report, Frontier decided not to proceed with the deal, although the company has not issued an official statement or commented on the report. Spirit Airlines was also reportedly considering a bankruptcy filing in October when a merger with JetBlue Airways Corporation broke down.
The company's stock plunged by 60.87% during premarket trading and sold for $3.22 at 5:29 am ET.
