Spirit Airlines rejected Frontier Airlines' second attempt to merge the two companies on Wednesday and will continue with its plans to exit bankruptcy. Frontier made an offer in early January for Spirit stakeholders to acquire $400 million in new debt and obtain 19% of Frontier's stock.

Frontier Airlines is making another offer to merge with bankrupt Spirit Airlines, less than two years after a previous plan fell through.

Frontier Airlines is attempting for a second time to merge with the now bankrupt Spirit Airlines, which declared bankruptcy late last year as budget airlines struggle.

Spirit Airlines rejected a $400 million merger proposal from Frontier this week, saying the offer was financially inadequate and came too late. Spirit Airlines declined an opportunity to merge with rival low-cost airline Frontier on Wednesday.