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Spirit Airlines ( SAVE ) shares are plunging more than 60% in premarket trading 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.

According to The Wall Street Journal , Frontier has pulled out of merger talks with Spirit, which has also been in advanced talks with bondholders  to work out a bankruptcy plan. "A bankruptcy filing is expected to happen within weeks," the report said.

Spirit is struggling with surging losses and said last month it plans to cut jobs and sell some planes as it tries to shore up its finances.

Spirit also last month extended a deadline for debt refinancing with Visa ( V ) and Mastercard ( MA ), and is facing looming debt maturities.

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 ) swooped in with an offer deemed superior, although that deal was called off in March amid antitrust scrutiny from regulators.

A JetBlue-Spirit combination would have created the fifth-largest carrier in the U.S. and put it in a position to compete in a domestic airline industry dominated by four big players : American Airlines ( AAL ), Delta Air Lines ( DAL ), Southwest Airlines ( LUV ), and United Airlines ( UAL ).

Spirit and Frontier didn't immediately return Investopedia requests for comment.

Spirit shares, which were down nearly 80% this year through Tuesday's close, lost two-thirds of their remaining value in premarket trading.