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Spirit Airlines Files for Chapter 11 Bankruptcy Protection Amid Financial Strain

Spirit Airlines, the largest ultra-low-cost carrier in the United States, filed for Chapter 11 bankruptcy protection on Monday following a series of financial setbacks and a collapsed merger with JetBlue. The airline reported that it has entered into a restructuring agreement with a majority of its loyalty and convertible bondholders to reduce debt and provide financial flexibility. Spirit officials emphasized that flight operations, ticket sales, and loyalty programs will continue as normal during the court-supervised process. Industry experts suggest the filing reflects broader challenges for budget airlines, including rising operational costs and increased competition for price-sensitive travelers. The company aims to emerge from bankruptcy in early 2025.

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