Spirit Airlines has filed for Chapter 11 bankruptcy protection, the company announced Monday morning.

Years of losses and two failed mergers have caused the ultra-low-cost carrier’s stock price to tumble 92% in the past year. But Spirit says it will bounce back.

South Florida-based Spirit Airlines filed a pre-planned Chapter 11 bankruptcy petition in New York and will continue operations as it seeks to reduce its debt load and return to profitability

Spirit Airlines has filed for Chapter 11 bankruptcy protection following significant financial struggles due to mounting losses and debt maturities, the airline announced Monday. The filing comes after two failed mergers in less than two years – one recently with Frontier and another earlier in 2024 with JetBlue – which left the ultra-low-cost carrier in a bind after repetitive quarterly losses.

Here’s what you need to know about the future of the air travel provider after it filed for bankruptcy protection on Monday, along with its track record of financial difficulties.

Spirit said it expects to operate as normal as it works its way through a prearranged Chapter 11 bankruptcy process and that customers can continue to book and fly without interruption. All tickets, credits and loyalty points remain valid, the airline said, as are affiliated credit cards and other membership perks.

The bankruptcy filing on Monday comes as Spirit Airlines had recorded increasingly steep losses post-pandemic.

Budget carrier Spirit Airlines announced early Monday that it has filed for Chapter 11 bankruptcy, saying it expects to spend the next year going through the process.

Spirit Airlines Inc. told customers Monday that they should continue feeling comfortable booking flights “now and in the future,” despite the airline filing for bankruptcy.