Spirit is filing for bankruptcy after years of quarterly losses and mounting debt.
The ultra-low-cost airline announced plans to begin the Chapter 11 process early Monday morning.
The carrier early Monday said it reached a prearranged deal with its bondholders including $300 million in debtor-in-possession financing to help it through the bankruptcy, which it expects to exit in the first quarter of next year. It said vendors and aircraft lessors will not be impaired. Spirit listed its assets and liabilities between $1 billion and $10 billion, in a court filing.
The airline said it expects to continue operating and said customers can book tickets.
“The most important thing to know is that you can continue to book and fly now and in the future,” Spirit CEO Ted Christie said in a letter to customers on Monday. He said customers can use tickets, credits and loyalty points normally.
Spirit is the first major U.S. airline to file for Chapter 11 since American Airlines 13 years ago.
