NEW YORK (AP) — Spirit Airlines, the largest low-cost carrier in the U.S., has filed for Chapter 11 bankruptcy protection Monday. The airline said customers should not see any disruption to their travel plans while the process unfolds.

The filing followed years of struggles for the Florida-based airline, which is known for its low-cost no-frills flights. Spirit has been unable to bounce back from the COVID-19 pandemic, largely due to increased operating expenses and stiffer competition. The airline has lost more than $2.5 billion since the start of 2020 as it racks up debt increase.

The bankruptcy procedure aims to restructure and consolidate the company his finances. However, anxiety over the bankruptcy filing may cause some travelers to look elsewhere for flights ahead of the busy holiday travel season.

Here’s what you need to know.

Will Chapter 11 affect my booking or loyalty points with Spirit?

For now, it’s business as usual. Spirit says it expects to operate as normal throughout the bankruptcy process and that travelers can continue to book and take flights without interruption.

All existing tickets, credits and loyalty points remain valid, as do affiliated airline credit cards and other membership benefits, the company said.

Reassuring customers that the bankruptcy won’t affect their travel plans or loyalty programs will be critical to Spirit’s short-term ability to maintain its businesses, according to Sarah Foss, global head of legal at financial services company Debtwire.

“If you’re someone booking your holiday travel in December…will you book Spirit, which is out of business? Or are you going to go with maybe Southwest or Delta – or something else that you feel might be more stable? Foss said.

As long as Spirit is on track to reach a settlement with creditors relatively quickly and avoid a broader liquidation, frequent flyer miles and other loyalty programs should remain untouched, she said. But customers’ response to Chapter 11 could threaten the company’s recovery efforts.

Foss said Spirit estimates show that about 34.3 billion frequent flyer miles worth about $105 million are currently not redeemed. “A rush to use these miles or get customers to choose another airline to travel on for the holidays could be disastrous for the airline’s reorganization efforts,” she said.

Will there be fewer flights available on the way?

While Spirit says currently scheduled flights will not be affected, the airline already warned about limited capacity before Monday’s filing and said it would reduce the number of trips offered in the coming months.

In a highly unusual move, Spirit announced plans to cut its October through December schedule by nearly 20 percent compared to the same period last year. The airline also had to ground dozens of Airbus planes for repairs Pratt & Whitney engines.

A reduced schedule should help support Spirit’s fares, according to some analysts, but it would give the airline’s rivals more of a boost than Spirit itself. Analysts at Deutsche Bank and Raymond James say Frontier, JetBlue and Southwest would benefit the most because of their overlap with Spirit on many routes.

Where does the Spirit first fly in and out?

Spirit flies to and from destinations in the US as well as Latin America and the Caribbean.

The airline’s largest hub is Fort Lauderdale-Hollywood International Airport in Florida. Spirit is the largest airline at the airport, accounting for 30 percent of all passengers in August, according to Transportation Department figures.

Spirit’s second largest hub is also in Florida. It’s Orlando International Airport, where Spirit trails only Southwest in passenger numbers — ranking slightly ahead of Delta, Frontier and American. The airline also has large operations in Las Vegas, Atlanta and Los Angeles. The carrier’s largest maintenance facilities are in Detroit and Houston.

Spirit frequently ranks among the largest US airlines consumer complaint rates, according to the Transport Department.

What other airlines offer budget fares?

Spirit may still be the largest discount airline in the US, but it faces more competition. The company has seen much of its recent losses as more rival carriers began offering their own versions of cheap tickets, no prices.

Some of Spirit’s biggest competitors are others low budget airlineslike Frontier and JetBlue, both previously tried to merge with the Spirit. JetBlue and Spirit abandoned their latest deal this year after a federal judge on the side with Department of Justice in its lawsuit to block the $3.8 billion deal, arguing it would raise prices too much for customers who depend on low fares.

Major carriers also offer competitive tiered pricing today. Southwest’s “Wanna Get Away” fares and Basic Economy options offered by United and Delta, for example, have become popular among budget-conscious travelers.

_____

Koenig reported from Dallas.