In a shocking turn of events, Spirit Airlines (SAVE) shares plummeted by nearly 60% on Wednesday as reports emerged that merger talks with Frontier Airlines’ parent company, Frontier Group Holdings (ULCC), have completely broken down, raising fears of an imminent bankruptcy filing.

The low-cost carrier, already grappling with significant debt maturities, has recently filed a Form 12b-25 with the Securities and Exchange Commission (SEC), signaling that it is currently “unable” to provide its quarterly financial results. This move indicates that Spirit is entertaining the possibility of bankruptcy, emphasizing that its existing equity could face cancellation if negotiations with bondholders do not result in favorable outcomes.

“If a definitive agreement with the noteholders is not reached, the company will consider all alternatives,” Spirit Airlines indicated in the filing, a clear hint that its financial future is hanging by a thread.

According to a report from The Wall Street Journal, Frontier Airlines has officially ceased its merger discussions with Spirit, which had been in advanced talks with investors to devise a bankruptcy strategy. Industry insiders now predict that a bankruptcy filing could occur within weeks.

Faced with spiraling losses, Spirit Airlines has already announced job cuts and plans to divest some of its aircraft as part of a desperate attempt to stabilize its finances. Just last month, the company extended its deadline for refinancing its debts with major credit card companies, Visa (V) and Mastercard (MA), a further indication of its precarious financial situation.

The tumultuous journey of Spirit Airlines took another hit when its potential merger with JetBlue Airlines was scuttled earlier this year amid antitrust concerns. The merger with JetBlue could have created the fifth-largest airline in the U.S. and increased its competitiveness against the industry’s biggest players: American Airlines (AAL), Delta Air Lines (DAL), Southwest Airlines (LUV), and United Airlines (UAL). Following news of Spirit's struggles, shares of these major airlines rose by 2% to 3% in early trading on Wednesday, likely influenced by the expectation of reduced competition.

As Spirit Airlines contemplates its bleak future, investors are left questioning whether this once-promising budget airline will soon be relegated to the annals of aviation history. With share prices down a staggering 90% this year alone, the airline's destiny seems precariously uncertain. Can Spirit find a way out of this financial quagmire? Only time will tell, but one thing is clear: the clock is ticking, and the stakes have never been higher.