Spirit Airlines is reportedly exploring a potential Chapter 11 bankruptcy filing, causing its shares to tumble significantly, with a drop of over 40% noted in some reports. This comes amid ongoing financial difficulties and a failed merger with JetBlue, leading to heightened speculation about the airline's future. As the low-cost carrier struggles to negotiate a rescue deal with bondholders, stocks of competitors like JetBlue and Frontier have surged in response to the news. The airline's mounting debt crisis, now totaling approximately $3.3 billion, has further compounded its problems, leaving its viability in serious doubt.