Spirit Airlines files for bankruptcy amid mounting financial losses

Sprit shares dropped 25% on Friday after a report that the airline was discussing terms of a possible bankruptcy filing with its bondholders. Photograph: Charles Krupa/AP

Spirit Airlines said on Monday that it had filed for bankruptcy protection and would attempt to reboot as it struggles to recover from the pandemic-caused decrease in travel and a failed attempt to sell the airline to JetBlue.

Spirit, the biggest US budget airline, has lost more than $2.5bn since the start of 2020 and faces looming debt payments totaling more than $1bn over the next year.