American Airlines Group Inc(NASDAQ:AAL) shares are trading higher by 6.50% to $11.53 during Friday's session amid a report thatSpirit Airlinesis engaging in bankruptcy talks with bondholders, sending ripples through the airline industry. Spirit's stock plummeted more than 40% in pre-market trading, signaling deep financial troubles for the budget carrier.

This development comes as Spirit struggles to manage a $3.3 billion debt load, including over $1.1 billion in secured bonds maturing imminently, while facing the possibility of a Chapter 11 bankruptcy filing.

Why This Matters: For American Airlines, Spirit's potential collapse presents a significant opportunity in several key areas...