<div id="readability-page-1">Frontier Group Holdings, Inc. ( ULCC ) shares moved higher in Tuesday's extended trading after reports surfaced that it is in discussions to merge with bankrupt Spirit Aviation Holdings, Inc. ( FLYYQ ) . <ul> <li>ULCC stock is climbing after-hours. See the chart and price action here. </li> </ul> Sources familiar with the matter said that the airlines are in discussions for a potential merger that could be announced as soon as this month, according to Bloomberg. Read Next: Elon Musk Prepares SpaceX IPO Valued At More Than RTX, Boeing, Lockheed Combined The news comes as Frontier announced the sudden replacement of its former CEO Barry Biffle on Monday. James G. Dempsey, formerly the company’s president, was appointed as interim CEO effective Monday, with Biffle remaining in an advisory capacity until Dec. 31. Spirit had previously attempted to merge with JetBlue Airways Corp. ( JBLU ) , but a federal judge blocked the proposed $3.8 billion deal in January 2024, ruling that the acquisition would violate antitrust laws by eliminating a key low-cost competitor and driving up fares for consumers. Following the court’s decision, the airlines mutually agreed to terminate the deal, a move that left Spirit facing severe financial headwinds and ultimately contributed to its Chapter 11 bankruptcy filing in November 2024. ULCC Price Action: Frontier shares were up more than 9% in Tuesday's after-hours trading, while Spirit Aviation ( FLYYQ ) shares remained flat due to the over-the-counter market being closed. Read Next: <ul> <li>Why iRobot Stock Could Pull A ‘Zombie Squeeze’ — The Walking Debt</li> </ul> Photo: Shutterstock</div>

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Frontier Group Holdings shares rose over 9% in after-hours trading following reports of merger talks with bankrupt Spirit Aviation Holdings. The merger could be announced soon, as Frontier recently replaced its CEO. Spirit's previous merger attempt with JetBlue was blocked due to antitrust concerns, leading to its bankruptcy. Spirit shares remained flat due to market closure.

Frontier Stock Climbs On Merger Talks With Spirit Aviation