US airline Spirit Airlines has filed for a “predetermined” Chapter 11 bankruptcy with the US Securities and Exchange Commission and flights will continue to operate “as normal”.

The Florida-based airline said the move was part of a “proactive step” that also includes a restructuring agreement, which is “supported by a supermajority” of its bondholders.

In a letter to customers, Spirit said they could continue to use all tickets, credits and loyalty points “as usual,” as well as take advantage of Free Spirit’s loyalty program, Saver$ Club benefits and credit card terms.

“The most important thing to know is that you can continue to book and fly now and in the future,” the carrier added in the letter.

Spirit said the financial restructuring process “is expected to reduce our total debt, provide increased financial flexibility, position Spirit for long-term success and accelerate investments that provide guests with enhanced travel experiences and greater value”.

Earlier this month, Spirit delayed its quarterly earnings report, citing its efforts with debt holders to restructure its obligations and exploring “strategic options and other ways to improve liquidity for the company.”

It also noted that operating income for the third quarter was down about $61 million from a year earlier due to lower average returns, the negative impact of no longer charging change and cancellation fees, along with higher operating costs.

As part of the Chapter 11 filing, Spirit expects to be delisted from the New York Stock Exchange in the near future.

Rumors have swirled for months that Spirit would have to file for bankruptcy amid quarterly losses and after its failed $3.8 billion merger attempt with JetBlue, which the U.S. Department of Justice ruled against in January 2024. The airlines initially appealed the decisionbut then aborted their merger in March.

Spirit hopes it will be able to complete the Chapter 11 process in the first quarter of 2025 “and emerge even better positioned to deliver the best value in the sky.”