A struggling budget airline may soon be sold.

That’s the word from CNBC, which reported Thursday that Spirit Airlines is in talks with alternative investment firm Castlelake for a potential takeover.

Spirit filed for Chapter 11 bankruptcy protection last August for the second time in a year after its previous turnaround plan failed, warning investors that the company could go out of business in the next 12 months.

“We don’t comment on market rumors and speculation,” a Spirit spokesman told CNBC, which added Castlelake didn’t immediately respond to requests for comment.

Spirit Airlines is known for offering very cheap base fares by charging extra for things like carry-on bags, checked luggage, seat selection and snacks.

The airline has faced significant financial difficulties in post-pandemic years amid increasing prices, overcapacity in the airline industry and a Pratt & Whitney engine recall grounded dozens of its Airbus aircraft starting in 2023.

As part of restructuring efforts, Spirit has been cutting unprofitable routes, exiting some U.S. airports, reducing workforce and aircraft fleet size, and reevaluating its operations to try to return to profitability.

Minneapolis-based Castlelake has been active for years in aviation finance. In August, it announced it was launching a new aviation lending arm, Merit AirFinance, with $1.8 billion in capital.

“Castlelake has continuously innovated to provide the aviation market with flexible solutions across all aviation assets and the capital stack, and the formation of Merit AirFinance exemplifies this commitment to a solutions-oriented partnership approach,” said Evan Carruthers, Chief Executive Officer and Chief Investment Officer of Castlelake.

“We believe that this approach is valuable to both aviation industry participants and our investors and that it enables us to create more opportunities to match capital with attractive risk-adjusted aviation exposure.”

Fellow budget carrier Frontier Airlines had also been in talks with Spirit over the years for a potential merger, including in recent months, but didn’t secure a deal, according to CNBC.