Spirit Airlines has filed for bankruptcy protection and will attempt to reboot as it struggles to recover from the pandemic-caused swoon in travel and a failed attempt to sell the airline to JetBlue.
Spirit is the biggest U.S. budget airline.
It has lost more than $2.5 billion since the start of 2020 and faces looming debt payments totaling more than $1 billion over the next year.
Shares of Miramar, Florida-based Spirit dropped 25% on Friday.
That was after The Wall Street Journal reported that the airline was discussing terms of a possible bankruptcy filing with its bondholders.