Frontier Airlines and Spirit Airlines (SAVE.US) are reportedly in merger talks.

Frontier Airlines is reportedly seeking to re-enter the bidding for Spirit Airlines (SAVE.US), according to reports. The two low-cost carriers had recently held talks, though they are still in the early stages and may not reach an agreement, according to people familiar with the matter. If a deal is reached, it could be part of Spirit's restructuring of its bankruptcy debt and other liabilities, according to reports. Spirit's stock surged more than 53% on Monday after the airline secured more time to address its debt burden, which increased the risk of bankruptcy. It added another 17% after-hours on Tuesday. Frontier's 2022 acquisition of Spirit fell apart due to a competing bid from Jetblue Airways (JBLU.US), but the Jetblue-Spirit deal was blocked earlier this year for antitrust reasons. Since then, Spirit has struggled as some of its planes were grounded due to an engine part defect, and fares were limited during the crucial summer travel period due to industry-wide overcapacity.