Budget carrier Spirit Airlines announced it filed for Chapter 11 bankruptcy on Monday in the face of mounting losses, increased labor costs and a highly competitive air travel market. The airline has failed to return to profitability following the downturn in air travel caused by coronavirus pandemic lockdowns.

The disparity in size between the low-priced airlines and the top firms underscores a fissure in the industry separating budget carriers in select markets from the major airlines that dominate flight offerings nationwide, Mike Boyd, president of aviation consulting firm Boyd Group International, told ABC News.

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

Tucked in the far corner of Terminal 3 at Chicago’s O’Hare airport, mostly unseen by business travelers, are the counters for Spirit Airlines, an ultra-low-cost airline that in 2010 became notorious as the first U.

Spirit Airlines, the airline of choice for many budget travelers, filed for bankruptcy protection Monday, raising questions about the viability of no-frills airlines in the post-pandemic era, as consumer preferences shift toward more premium offerings.

Well, it’s official, Spirit Airlines has filed for bankruptcy, and who could’ve expected this one?!.... asked nobody. Known for their bright yellow and black logo, cheap flights but expensive luggage policy,

Spirit Airlines CEO Ted Christie received a $3.8 million retention bonus a week before the Florida-based carrier filed for Chapter 11 bankruptcy. Christie will retain the bonus if he remains with the company for another year.