Talks have begun again that could lead to a potential merger between budget airlines Spirit and Frontier, according to a Wall Street Journal report citing people familiar with the discussions.
The report says the talks are still in their early stages, but that Spirit has continued discussions with bondholders to hash out the terms of a possible bankruptcy filing as part of the plan.
The report signaled it is Frontier that is part of the push to renew the bid to merge — and it could largely depend on Spirit's ability to file for bankruptcy and restructure debt that the company holds.
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The airline has seen other attempts at similar deals in the past, including in 2022 when hopes were strong to see Frontier buy Spirit in a high-profile deal that had been anticipated.
JetBlue also launched what was described as a hostile takeover bid for Spirit after attempts
Earlier this month Spirit Airlines stock fell on reports that the company was facing serious financial woes.
Spirit recently made a deal with its credit processor to delay a refinance deadline on some of the company's debt until late December. The airline drew down on the $300 million that was left in the company's credit line, the Wall Street Journal reported.
