Spirit Airlines has filed for bankruptcy protection, it disclosed on Monday (November 18), after the pioneer of no-frills air travel in the U.S. struggled with a long run of quarterly losses and significant debt.
The airline's woes deepened after the collapse of its $3.8 billion planned merger with JetBlue Airways in January and the impact of RTX's Pratt & Whitney Geared Turbofan (GTF) engines snag that grounded many of its aircraft.
Spirit, recognized for its bright yellow livery, had been losing money despite strong travel demand, as it struggled with bloated costs.
The airline listed its estimated assets and liabilities in the range of $1 billion to $10 billion each, according to a court filing on Monday.
Spirit has entered into an agreement with its bondholders that is expected to reduce total debt and provide increased financial flexibility.
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