Spirit Airlines has filed for Chapter 11 bankruptcy protection after incurring over $2.5 billion in losses since 2020. The airline will continue normal operations and honor existing tickets and loyalty points. Facing over $1 billion in upcoming debt payments, Spirit aims to restructure with $350 million in equity investment and $300 million in loans from bondholders. The company is reducing its flight schedule by 20% this quarter, as competition intensifies from other budget carriers. Spirit expects to complete its restructuring efforts by early 2025 and warns of potential challenges attracting customers during the busy holiday season.