An application for protection from bankruptcy was filed by low cost airline Spirit Airlines after years of mounting losses, a failed merger and more discerning consumer preferences.

The carrier early on Monday said it had reached a tentative deal with its bondholders, which includes $300 million in funding for the debtor in his possession. He said that aircraft sellers, lessors will not suffer a loss.

The airline said it expects to continue operating as normal and that customers can continue to book. It also said it expects to emerge from bankruptcy protection in the first quarter of next year.

“The most important thing to know is that you can continue to book and fly now and into the future,” Spirit CEO Ted Christie said in a letter to customers Monday. He said customers can use tickets, credits and reward points “as usual”.

Spirit is the first major US airline to file for Chapter 11 since American Airlines 13 years ago.

The airline had repeatedly pushed back a deadline with its credit card processor to renegotiate a $1.1 billion debt. dollars that had to be paid next year or risk losing the ability to process those transactions, according to CNBC.

The airline hasn’t made a profit since 2019 and lost more than $335 million in the first half of the year. The company said it expects third-quarter margins to be 12 percentage points lower than the same period a year ago and that sales were $61 million lower than last year, while costs rose and fares slipped.