Spirit Airlines has filed for Chapter 11 bankruptcy protection after significant financial difficulties due to mounting losses and debt maturities, the airline announced Monday.

The filing comes after two failed mergers in less than two years — one recently with Frontier and another earlier in 2024 with JetBlue — that left the ultra-low-cost airline in trouble after repeated quarterly losses.

In October, Spirit announced plans to sell several aircraft and lay off employees in an effort to raise cash and revive operations.

Spirit Airlines President and CEO Ted Christie said the airline has entered into an agreement with its bondholders that is expected to reduce the company’s overall debt and provide greater financial flexibility.

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Spirit Airlines has filed for Chapter 11 bankruptcy protection, the company announced Monday morning. (Spirit Airlines/Fox News)

“This series of transactions will significantly strengthen our balance sheet and position Spirit for the future as we continue to execute our strategic initiatives to transform our guest experience, delivering new, enhanced travel options, greater value and greater flexibility,” Christie said in a press release. . “I am extremely proud of the Spirit team’s hard work and dedication, which is critical to our continued progress in advancing our business and delivering services to our guests.”

The airline listed its estimated assets and liabilities at between $1 billion and $10 billion each, according to a lawsuit filed Monday.

The airline has received a commitment for a $350 million equity investment from existing bondholders as part of its prearranged Chapter 11 bankruptcy protection.

Existing bondholders will also provide $300 million in debtor-in-possession (DIP) financing, which, together with available cash, is expected to support the airline through the Chapter 11 process.

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Travelers wheel luggage to the Spirit Airlines check-in counter at George Bush Intercontinental Airport, Tuesday, Nov. 21, 2023, in Houston. (Jason Fochtman/Houston Chronicle via Getty Images/Getty Images)

Spirit’s shares will be canceled and have no value as part of the airline’s restructuring, Spirit said in the news release, after being delisted from the New York Stock Exchange “in the near term.”

The company started in 1964 as a long-distance transportation company before switching to aviation around 1983. It offered leisure packages to popular destinations under the name Charter One Airlines and was renamed Spirit in 1992.

The discount airline became popular with price-conscious customers who were willing to forego features like checked bags and seat assignments.

The airline said the bankruptcy filing will not affect guests’ ability to book flights and travel normally, or their ability to use tickets, credits and loyalty points. (Eva Marie Uzcategui/Bloomberg via Getty Images/Getty Images)

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Ultra-low-cost airlines, which have excelled at keeping their costs low and offering affordable, no-frills travel, have struggled since the pandemic as travelers prefer to pay extra for a more comfortable trip while seeking experiences.

The airline said guests can still book flights and fly as normal, and all tickets, credits and loyalty points can also be used as normal.

Reuters contributed to this report.