Spirit Airlines ( SAVE ) shares are surging nearly 20% in premarket trading Wednesday on a report that Frontier Airlines parent Frontier Group Holdings ( ULCC ) is in the early stages of a renewed bid for its rival discount carrier.

The Wall Street Journal said the two sides have had recent discussions and a deal would form part of Spirit’s debt restructuring. Spirit is currently in the midst of discussions with bondholders ahead of a potential bankruptcy filing , the report said, noting that merger talks are in early stages and may not result in a deal.

Spirit last week extended a deadline for debt refinancing with Visa ( V ) and Mastercard ( MA ).

Frontier Tried To Buy Spirit in 2022

Frontier’s initial plan to buy Spirit in 2022 fell apart after JetBlue Airways ( JBLU ) swooped in with an offer deemed superior. The JetBlue deal, which would have created the U.S.’s fifth-largest carrier, was called off in March amid antitrust scrutiny from regulators, causing Spirit’s stock to crater.

Even after today’s premarket surge, Spirit shares have lost 85% of their value this year. Frontier Group shares are little changed but have gained more than 20% in 2024.