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.

While the word "bankruptcy" brings to mind images of shuttered gates and liquidation (and that is indeed what happened to a number of low-cost airlines this year), filing for Chapter 11 protection is actually a way to keep the company going and reorganize finances amid rising debt.

Spirit Airlines files for bankruptcy after years of losses and a blocked JetBlue merger. The carrier secures $300M in financing, aiming to exit bankruptcy by next year.

Spirit Airlines, Inc., a prominent low-cost carrier with multiple weekly flights to the U.S. Virgin Islands, has officially filed for Chapter 11 bankruptcy in a New York court, listing assets and liabilities valued between $1 billion and $10 billion.

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