Years of losses and two failed mergers have caused the ultra-low-cost carrier’s stock price to tumble 92% in the past year. But Spirit says it will bounce back.

South Florida-based Spirit Airlines filed a pre-planned Chapter 11 bankruptcy petition in New York and will continue operations as it seeks to reduce its debt load and return to profitability

Spirit Airlines announced Monday it has filed for Chapter 11 bankruptcy in a restructuring that aims to reduce the company’s debt. The budget airline is known for its inexpensive travel fares. It recently went viral after a raccoon was seen falling through the ceiling at a Spirit Airlines check-in desk at LaGuardia Airport in New York.

The bankruptcy filing on Monday comes as Spirit Airlines had recorded increasingly steep losses post-pandemic.

Spirit Airlines says it will continue flying as it files for Chapter 11 bankruptcy protection. Monday's announcement follows years of losses and a failed merger attempt for the low-cost carrier.

Spirit Airlines files for Chapter 11 with a Restructuring Support Agreement, targeting debt reduction and financial stability. Plan includes $350M equity investment, $300M DIP financing, and equitizing $795M debt,

Budget carrier Spirit Airlines announced early Monday that it has filed for Chapter 11 bankruptcy, saying it expects to spend the next year going through the process.