Negotiations will reportedly resume for a possible merger between Spirit and Frontier

Negotiations have resumed, which could lead to a potential merger between low-cost airlines Spirit and Frontier, according to a Wall Street Journal report citing people familiar with the discussions.

The report says negotiations are still in their early stages, but that Spirit has continued discussions with bondholders to define the terms of a possible bankruptcy filing as part of the plan.

David Zalubowski/AP

The report signaled that it is Frontier that is part of the effort to renew the merger bid – and that could largely depend on Spirit’s ability to declare bankruptcy and restructure the debt the company holds.

RELATED | Spirit Airlines shares plunged after a report claimed the company was in financial trouble

The airline has seen other attempts at similar deals in the past, including in 2022, when hopes were high of seeing 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 attempted

Earlier this month, Spirit Airlines shares fell on reports that the company was facing serious financial problems.

Spirit recently reached an agreement with its credit processor to delay the deadline for refinancing some of the company’s debt until the end of December. The airline drew down the $300 million remaining in the company’s line of credit, the Wall Street Journal reported.