Discount airline Spirit Airlines is reportedly considering filing for Chapter 11 bankruptcy after its merger with JetBlue collapsed.

The Wall Street magazine The airline has reportedly held discussions with bondholders about the possible filing and is exploring an out-of-court restructuring. Should a decision be made about an application for insolvency, WSJ says it’s not imminent.

Spirit has experienced more than its fair share of financial turmoil since the pandemic. The airline has not made an annual profit since before Corona. This has left the airline with a significant debt load. A deal was negotiated to be acquired by JetBlue, but the Justice Department blocked that deal, saying it would reduce consumer choice and lead to higher ticket prices.

In January, a federal judge agreed with the DOJ and blocked the merger. Following this ruling, shares fell 45%. The following Friday they fell another 27% WSJThe report was at just $1.62 per share in early trading.

Spirit has $3.3 billion in debt coming due. The Wall Street Journal The airline reportedly owes over $1.1 billion in secured bonds in less than a year.

The airline has already canceled dozens of routes for the upcoming holiday season, furloughed 186 pilots and offered customers incentives such as introducing a business class option and blocking the middle seat.

Spirit did not comment directly WSJ Article, when contacting Assets, However, pointed to comments made by CEO Ted Christie at the airline’s earnings call in August, in which he addressed discussions with bondholders about upcoming maturities.

“Before we dive into the results, I would like to note that we are in productive discussions with our bondholders’ advisors to address upcoming debt maturities,” he said. “As these discussions are ongoing, we will not go into detail, answer questions on this topic or speculate on possible outcomes. Of course, this is a priority and we are focused on achieving the best outcome for the business as quickly as possible, while also focusing on driving performance and implementing our new travel options and improved guest experience.”

This story was originally published on Fortune.com