Spirit Airlines announced plans to raise cash by selling 23 aircraft for $519 million and implementing layoffs to cut costs by $80 million annually, according to an SEC filing.

Facing financial challenges after its proposed merger with JetBlue was blocked by regulators, Spirit anticipates reducing its workforce and lowering flight capacity, with fourth-quarter capacity expected to drop by 20% year over year.

Spirit has also reopened merger talks with Frontier Airlines and is exploring potential bankruptcy options, Fox Business has reported.

Written by B.C. Begley