Another company has filed for bankruptcy and this one hits the budget travelers. Spirit Airlines filed for Chapter 11 bankruptcy protection on Monday with the budget airlines citing continuing rising losses,

The company has reassured passengers that its Chapter 11 bankruptcy will not affect their bookings and that staff will still be paid.

Spirit Airlines said Monday it has filed for Chapter 11 bankruptcy protection after struggling with losses, growing debt and a failed merger during the post-pandemic travel lull.

Spirit Airlines has filed for bankruptcy protection, it disclosed on Monday, after the pioneer of no-frills air travel in the U.S. struggled with a long run of quarterly losses and significant debt. The airline's woes deepened after the collapse of its $3.

The budget airline said Monday that it has entered a restructuring agreement with its bondholders to deleverage its balance sheet.