Spirit Airlines files for bankruptcy

NEW YORK (CNN) — Spirit Airlines filed for bankruptcy protection Monday, as mounting losses, unaffordable debt, increased competition for bargain-seeking airline passengers and the inability to merge with other airlines left it little choice.

The airline said it will continue to operate as it restructures its debt.

“Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal,” it said in a statement.

Airlines and other companies in the United States frequently file for bankruptcy and emerge stronger on the other side of the process. Most major US airlines, including the three largest — American Airlines, United and Delta — have filed for bankruptcy at some point in the past 25 years.

But it is also possible that Spirit (SAVE) will end up being bought by another airline or be forced to liquidate. Numerous airlines, including American, have had their assets purchased out of bankruptcy and merged with a different airline.

In recent years Spirit has attempted two mergers, one with fellow bargain carrier Frontier Airlines and once with JetBlue Airways, which topped the offer from Frontier only to have its purchase blocked by a federal judge on antitrust grounds.

This is a developing story and will be updated.