Spirit Airlines he apparently plans to file for Chapter 11 bankruptcy protection after its last attempt to merge with Frontier Airlines failed.

This marks the second failed merger in less than two years, leaving Spirit facing significant financial challenges. The ultra-low-cost carrier has struggled to recover from mounting losses and falling debt.

The company is expected to file within weeks, people familiar with the matter told The Wall Street Journal.

The company’s shares fell more than 55% on Wednesday.

SPIRIT AIRLINES PLANS TO SELL PLANES, CUT SEATS

The company announced on Tuesday that it was in ongoing discussions with bondholders to restructure its debt and explore ways to improve its financial situation.

If the company reaches a final settlement, Spirit said it would likely go through a legal restructuring that is not expected to affect general creditors, employees or customers, but could result in a write-off of the company’s current stock. If no agreement is reached, the company will explore other options.

Spirit Airlines canceled about 11% of their flights on Friday. (Spirit Airlines/Fox News)

The company has reportedly resumed potential merger talks with Frontier Airlines this year after its plans to merge with JetBlue in a $3.8 billion deal were blocked by regulators in January over fears the deal would hurt the availability of low-cost airline tickets.

JETBLUE, SPIRIT AGREE TO CEASE OPERATIONS DUE TO REGULATORY ISSUES

However, people familiar with the matter said Frontier opted not to proceed with the merger.

In 2022, Frontier and JetBlue were in a months-long bidding war for Spirit after Frontier’s parent company, Frontier Group Holdings, and Spirit announced a definitive merger agreement.

Frontier Airlines aircraft are parked at the gates of Denver International Airport (DEN) in Denver, Colorado on August 5, 2023. (Photo by DANIEL SLIM/AFP via Getty Images/Getty Images)

Last month, Spirit announced plans to sell more planes and lay off workers as it tried to raise cash and restart operations.

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In a filing with the Securities and Exchange Commission (SEC), Spirit said it has identified about $80 million in annual cost reductions it plans to implement next year.

These cost reductions will primarily result from a “workforce reduction commensurate with the company’s expected flight volume,” Spirit said in the filing. The company did not disclose how many cuts would be involved.