Spirit Airlines is now reportedly in advanced talks over a possible bankruptcy filing following a failed merger and continued financial struggles, The Wall Street Journal reported Tuesday evening. The company had been exploring a merger with another low-cost airline,

The budget carrier is in advanced discussions with bondholders over a filing that could occur within weeks.

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,

Spirit Airlines stock fell by about 36% in afterhours trading after the Wall Street Journal reported that the Florida-based budget airline is in advanced discussions with bondholders to hammer out a bankruptcy plan.