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.

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

Spirit Airlines Inc. shares fell more than 60% in the after-hours session Tuesday after the Wall Street Journal reported it was nearing bankruptcy after merger talks with Frontier Group Holdings Inc.

Spirit Airlines Inc. is preparing to file for bankruptcy protection after merger talks with Frontier Group Holdings Inc. broke down, the Wall Street Journal reported.

The Journal reported that Spirit is looking to bankruptcy after talks with Frontier about reviving a merger broke down.

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. Shares of the company were down 39% at $1.8 after the bell. The stock has fallen nearly 80% this year, while the S&P 500 passenger airlines index jumped 52%.

Spirit Airlines is in constructive discussion with its creditors and continues to explore strategic alternatives to improve liquidity, the ultra-low-cost carrier said on Tuesday. The negotiations, with a supermajority of the noteholders,

The ultra-low cost airline is gathering assets for a bankruptcy plan, which motions could be initiated in coming weeks.