** Shares of Frontier Group Holdings ULCC.O, parent company of Frontier Airlines, up 9.7% at $5.61 after the bell
** Bankrupt Spirit Aviation Holdings FLYYQ.PK is in talks to merge with ULCC, Bloomberg News reports
** A deal could be announced as soon as this month, though talks are ongoing and may collapse without an agreement — Bloomberg
** Spirit and Frontier Airlines declined to comment when contacted by Reuters
** ULCC has fallen over 28% YTD
(Reporting by Juby Babu in Mexico City)
((Juby.Babu@thomsonreuters.com;))