Spirit Airlines is reportedly in talks with bondholders about a potential Chapter 11 bankruptcy filing.
US news outlets say the budget carrier is also considering an out-of-court restructuring but is primarily focused on reaching agreements with creditors.
The discussions come after the collapse of its merger with JetBlue earlier this year.
Spirit continues to face financial challenges, with $3.3 billion in debt, including $1.1 billion in bonds maturing soon.
The airline has struggled to return to profitability since before the Covid pandemic, and recent engine recalls have worsened its situation.