Spirit Airlines is reportedly preparing to file for bankruptcy following the collapse of merger talks with Frontier Airlines. This development comes amidst ongoing negotiations with creditors and raises concerns about mass route cancellations across the United States. The airline has seen its stock plummet by 42% after reports of its bankruptcy preparations surfaced. As the situation unfolds, Spirit Airlines is expected to potentially wipe out shareholders in a restructuring deal, with the filing process approaching amidst missed deadlines for quarterly reports.