**Spirit Airlines Seeks Financial Lifeline Amid Bankruptcy Speculations**

Spirit Airlines announced new measures to boost its cash reserves amid persistent bankruptcy rumors. The low-cost airline has struck a deal with aerospace firm GA Telesis to sell some of its aircraft for around $519 million, according to a regulatory filing on Thursday. The sale is projected to inject $225 million into Spirit over the next year.

Despite expecting to end the current year with $1 billion in liquid assets, the airline is initiating a cost-cutting strategy next year that could save it approximately $80 million annually. Financial woes have plagued Spirit since a federal judge blocked its proposed $3.8 billion merger with JetBlue Airways in March, citing potential anti-competitive effects.

Adding to the uncertainty, Spirit's stock took a hit earlier this month following a Wall Street Journal report suggesting the airline might file for bankruptcy soon. However, Spirit's latest filing indicates a brighter outlook, with third-quarter adjusted operating margins expected to be at the higher end of previous estimates due to stronger-than-anticipated revenue and early successes from its transformation plan.

The company's shares rose by over 8% in pre-market trading on Friday. Full third-quarter earnings will be reported in mid-November. Meanwhile, the Wall Street Journal revealed that Spirit and Frontier Airlines could be revisiting old merger discussions, possibly as part of a debt restructuring strategy.

In a separate announcement last week, Spirit disclosed an extension on the refinancing deadline for approximately $1.1 billion in debt to December 23. It also revealed that it had fully utilized a $300 million revolving credit facility established in March 2020, with borrowings scheduled to mature at the end of September 2026.