Two Spirit Airlines planes on a tarmac with a JetBlue plane in the middle.
Spirit Airlines is reportedly planning to file for bankruptcy after a merger deal with Frontier Airlines fell through (Picture: Getty Images)

A US-based airline is reportedly preparing to file for bankruptcy, spurring fears of travel chaos as the holidays approach.

Spirit Airlines is in advanced talks with bondholders and could file for bankruptcy protection within weeks, sources told The Wall Street Journal on Tuesday.

The apparent bankruptcy plan comes after talks to merge with another ultra low-cost carrier, Frontier Airlines, fell through.

Florida-based Spirit was also speaking with Frontier to possibly restart conversations on merging, but sources told the newspaper that the latter decided against going in that direction in the near future.

Spirit previously rejected a takeover bid from JetBlue in favor of a prior merger opportunity with Frontier.

The bankruptcy report came a day after a Spirit plane was struck by gang gunfire while trying to land in Port-au-Prince, Haiti.

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