(Bloomberg) -- Spirit Airlines Inc. told customers Monday that they should continue feeling comfortable booking flights “now and in the future,” despite the airline filing for bankruptcy.
The US carrier sought Chapter 11 protection in New York on Monday to restructure $1.6 billion of debt after struggling to overcome mounting losses and failed merger attempts, according to court filings. The company said it plans to relinquish control to its bondholders. Its shares will be delisted.
In the message to customers, Spirit said the agreement “is expected to reduce our total debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments providing Guests with enhanced travel experiences and greater value.” The company has said it will continue to operate normally throughout the bankruptcy process, which it expects to complete early next year.
The carrier said during that time customers can continue to use their tickets and loyalty points and benefit from rewards programs. A representative for Spirit declined to comment further.
The proceedings come ahead of the busy Thanksgiving travel season, which Airlines for America, a trade group for the largest carriers, predicts will set an all-time record with more than 31 million passengers flying on US airlines.
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