Spirit Airlines might go bankrupt months after calling off a sale to JetBlue—and its stock is in a tailspin

Discount carrier Spirit Airlines is reportedly considering a Chapter 11 bankruptcy filing following its failed merger with JetBlue.

The Wall Street Journal reports the airline has been in discussions with bondholders over the possible filing, as well as exploring an out-of-court restricting. Should a bankruptcy filing be decided upon, the Journal says, it would not be imminent.

Spirit has encountered more than its share of financial turbulence since the pandemic. The airline has not posted an annual profit since before COVID. That has resulted in the carrier having a substantial debt load. It struck a deal to be acquired by JetBlue, but the Justice Department moved to block that deal, arguing it would harm consumer choice and result in higher ticket prices.

In January, a federal judge agreed with the DOJ and blocked the merger. Shares tumbled 45% after that verdict. They were down another 27% on Friday following the Journal ’s report to just $1.62 per share in early trading.

Spirit has $3.3 billion in debt with maturities coming due. The Journal reports the carrier owes over $1.1 billion in secured bonds in less than a year.

The carrier has already cut dozens of routes during the upcoming holiday period and furloughed 186 pilots , as well as offered incentives to customers , such as launching a business-class option and blocking off the middle seat.

Spirit did not comment directly on the WSJ article, when contacted by Fortune , but referred to comments made by CEO Ted Christie on the carrier’s August earnings call, where he addressed discussions with bondholders about the looming maturities.

“Before we get into the results, I want to note that we are engaged in productive conversations with the advisors of our bondholders to address the upcoming debt maturities,” he said. “Because those conversations are ongoing, we are not going to go into detail or take any questions on this topic or speculate on potential outcomes. Needless to say, it is a priority, and we are focused on securing the best outcome for the business as quickly as possible, while staying focused on driving performance and implementing our new travel options and elevated guest experience.”

This story was originally featured on Fortune.com