Spirit Airlines files for bankruptcy after collapse of JetBlue merger

Spirit Airlines has filed for bankruptcy protection as its financial woes deepen, the company announced on Monday.

The US's largest budget airline has lost more than $2.5bn (€2.4bn) since the start of 2020.

According to a court document, it has listed assets and liabilities in the range of between $1bn (€950m) and $10bn (€9.5bn).

Spirit said it expects to operate as normal as it works its way through a prearranged Chapter 11 bankruptcy process, meaning that customers can continue to book and fly without interruption.

"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. 

The firm explained in a separate statement that it had reached an agreement on debt restructuring with its bondholders.

These bondholders will provide $350m (€332m) of fresh equity and $300m (€284m) of debtor-in-possession financing.

Shares of Spirit dropped 25% last Friday after The Wall Street Journal reported that the airline was discussing terms of a possible bankruptcy filing with its bondholders.

It was just the latest in a series of blows that have sent the stock crashing down by 97% since late 2018 - when Spirit was still making money.

CEO Ted Christie confirmed in August that Spirit was talking to advisers of its bondholders about the upcoming debt maturities. He called the discussions a priority, and said the airline was trying to get the best deal it could as quickly as possible.

"The chatter in the market about Spirit is notable, but we are not distracted," he told investors during an earnings call.

"We are focused on refinancing our debt, improving our overall liquidity position, deploying our new reimagined product into the market, and growing