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Financially troubled US low-cost carrier Spirit Airlines announced on Monday that it has filed for bankruptcy as part of a restructuring deal with its creditors.

It said it had agreed with most of its creditors to reduce its debt by injecting $350 million from existing bondholders.

“Spirit has received sustained commitments for a $350 million capital investment from existing bondholders and will complete a deleveraging transaction to capitalize $795 million of the funded debt,” it said. – a statement.

Spirit, which filed for bankruptcy under a streamlined Chapter 11 process, said it plans to continue operating throughout this proceeding and that passengers can “continue to book and fly without interruption,” including using credits and loyalty points .

Workers will continue to be paid, as will suppliers and aircraft lessors, it said.

Spirit also said it expects to be delisted from the New York Stock Exchange “in the near term,” without specifying a date.

Its shares have fallen nearly 90% in the past year.

The Florida-based group, which posted 11 consecutive quarters of losses as of August, indicated earlier this month that it would not be able to publish results for the third quarter of 2024.

Spirit has grown capacity and market share in the post-Covid era, but has faced increased competition from other carriers, leading to oversupply.

A potential merger with Frontier Airlines fell through in 2022 due to a competing offer from JetBlue.

Earlier this year, JetBlue and Spirit Airlines called off their merger weeks after a federal judge ruled it violated US antitrust law.

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