Spirit Airlines Eyes Merger With Frontier Amid Restructuring (3)

Bankrupt Spirit Aviation Holdings Inc. is in revived discussions to merge with Frontier Group Holdings, people familiar with the matter said, in a deal that could rescue the deep-discount airline from insolvency at a time of stiff competition from larger US carriers.

A transaction could be announced as soon as this month, said the people, who asked not to be identified because the matter is confidential. The discussions are ongoing and could end without a deal taking place, they said.

Shares in Frontier rose about 10% in US postmarket trading after Bloomberg’s report. Spirit was unchanged and closed Tuesday ...