• On Thursday, Spirit Airlines unveiled plans to cut costs and raise money amid bankruptcy news.
• The stock rose after the company said it would sell up to $519 million worth of Airbus jets and cut staff.
• Spirit has faced challenges since its planned merger with JetBlue was canceled in March.

Spirit Airlines' problems are becoming increasingly clear as the company works to raise money through aircraft sales and workforce cuts.

The budget airline has struggled since its merger with JetBlue was canceled in March. In January, a federal judge blocked the deal, saying it would reduce competition and drive up fares.

The Wall Street Journal reported earlier this month that Spirit was considering filing for Chapter 11 bankruptcy. The stock has fallen 85% since the start of the year.

However, the market has reacted positively to cost-cutting measures announced this week, as well as reports of new talks with rival ultra-low-cost carrier Frontier about a possible merger.

In a regulatory filing on Thursday, Spirit said it had agreed to sell 23 Airbus aircraft to GA Telesis – a company that specializes in the maintenance, leasing and sale of aircraft parts.

The airline said it expects the deal to be worth $519 million. In its last earnings release in August, Spirit said it had a fleet of 210 aircraft, meaning the airline sells more than 10% of its total aircraft.

The sale is intended to further reduce Spirit's capacity. The company expects capacity to be in the mid-teens next year. The airline added in the filing that a recall from engine maker Pratt & Whitney would contribute to that expected decline.

In contrast, major airlines such as United, Delta and American said in their third-quarter earnings reports that they expect passenger demand to increase and increase their profits through premium cabins.

Low-cost airlines have sought to capitalize on this increased demand for premium options. In July, Spirit announced new ticket packages to appeal to higher-paying customers.

Spirit also said Thursday that it plans to implement $80 million in cost cuts early next year – primarily through staff cuts amid expected declines in flight volume.

The airline's shares rose about 12% in premarket trading Friday, suggesting Spirit may have found a way to avoid bankruptcy.

Spirit did not immediately respond to a request for comment from Business Insider sent outside regular U.S. business hours.