Spirit Airlines is preparing to file bankruptcy

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Welp, it was only a matter of time.

Spirit Airlines tried and failed to merge with Frontier, their stock dropped by more than 60%, and now they’re looking to file for bankruptcy.

On Tuesday, a Wall Street Journal report said the airline is preparing to file for bankruptcy protection within weeks, as its tie-up discussions with Frontier broke down …

If an agreement with creditors is executed, it “is expected to lead to the cancellation of the company’s existing equity,” Spirit said. If a deal with noteholders is not reached, the carrier said it would consider all alternatives.

Spirit stock has fallen over 90% this year.

So it might soon be time to say goodbye to cheap flights, awesome brawls in the cabin, and being shot at by Haitians.

Wall Street has grown increasingly bearish on the airline, with analysts maintaining zero Buy ratings, four Hold recommendations, and eight Sell recommendations on the stock, according to Bloomberg data.

In a client note late Tuesday, TD Cowen analysts lowered their full-year estimates under the assumption that the airline ‘significantly shrinks in a restructuring.’

…

‘In the event of a restructuring, focus will then shift to the fate of Spirit’s fleet,’ [TD Cowen analyst Tom] Fitzgerald added. ‘We expect the airline to sell off the remaining encumbered assets to pay off the associated debt on the aircraft and work to reject leases on the rest of the fleet.’

Last month Spirit said it would furlough more than 300 pilots in January and sell older aircraft in order to cut costs.