Spirit Airlines files for bankruptcy amid mounting losses and looming debts

Spirit Airlines announced Monday that it has filed for bankruptcy protection and will try to restart its business, as it struggles to recover from the collapse in travel caused by the pandemic and a failed attempt to sell the airline to JetBlue.

Spirit, the largest low-cost airline in the United States, has lost more than $2.5 billion since the start of 2020 and faces upcoming debt payments totaling more than $1 billion in the coming year.

Spirit said it expects to operate normally as it moves through a pre-agreed Chapter 11 bankruptcy process and that customers can continue booking and flying without interruption.

Shares of Spirit, based in Miramar, Florida, fell 25% on Friday after The Wall Street Journal reported that the airline was discussing the terms of a possible bankruptcy filing with its bondholders.

It was another blow in a series of complications that has sent its shares down 97% since late 2018, when Spirit was still turning a profit.

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