Spirit Airlines saw its stock tumble 59% as reports surfaced that the company might soon file for bankruptcy protection. Burdened by substantial debt, Spirit has been exploring options to restructure through talks with creditors, especially after merger negotiations with Frontier collapsed. These talks could result in the cancellation of Spirit’s current equity, which has already lost more than 90% of its value this year.

Analysts have become increasingly bearish, with no buy ratings on the stock and many warning of potential downsizing. The company also announced that it postponed filing its quarterly earnings due to the diversion of resources toward these restructuring efforts.

To further address its financial strain, Spirit plans to furlough over 300 pilots and sell older aircraft in early 2025, even as the airline grapples with liquidity concerns and potentially shifts its fleet strategy.