Spirit Airlines reportedly in talks with investment firm Castlelake

• The company had about 25,000 direct employees and independent contractors as of August, including 3,100 pilots, 5,300 flight attendants and 600 aircraft maintenance technicians.

Driving the news: Castlelake is discussing a deal to acquire Spirit after the airline's talks with budget rival Frontier Group failed to yield an accord, CNBC reported Thursday.

• Castlelake "has been active for years in aviation finance," CNBC reports, having launched lending unit Merit AirFinance in 2025 with $1.8 billion in deployable capital.

The big picture: Spirit filed for Chapter 11 bankruptcy protection in August for the second time in less than a year, aiming to stay in business despite myriad business challenges that made it difficult for the company to compete.

• The company had 3.9% market share in domestic passenger miles during the 12-month period ending in September, making it the seventh largest domestic operator.

What they're saying: A spokesperson for Spirit said the company doesn't "comment on market rumors and speculation." Castlelake did not immediately respond to requests for comment.

• Spirit had said in December that its bankruptcy financing deal required the company to make progress on a debt restructuring or a strategic transaction.