Spirit Airlines Shares fell to a record low on Friday after news that the company is exploring Chapter 11 bankruptcy protection. The airline faces a deadline this month to renegotiate more than $1 billion in debt.

A bankruptcy filing would mark a dramatic turnaround for the airline with its iconic yellow planes that targets budget travelers.

Profitable and on-time before the pandemic, Spirit’s no-frills service became a punchline for late-night comedians and a thorn in the side of major network airlines as it saddled customers with double-digit fares and fees for everything from seat reservations to carry-on bags. lured luggage.

But major airlines soon successfully copied much of this business model with their lowest base fares. And a federal judge blocked Spirit’s planned takeover earlier this year JetBlue Airways For antitrust reasons, stopping what both airlines claimed was an important way to compete with larger rivals. The failed deal left Spirit alone to fight with a Pratt & Whitney Engine recalls, changing consumer travel habits and higher costs.

After the JetBlue deal fell through, Spirit said in January that it was exploring options to refinance its debt.

Spirit has $1.1 billion in loyalty program-backed debt due next September. It has until October 21 to refinance or extend these secured notes.

The airline has been loss-making since 2020 and has reported disappointing results this year, including a loss of nearly $193 million in the second quarter. The company has spent much of this year seeking cost cuts, including furloughing pilots, cutting flights and postponing orders for Airbus jetliners.

Spirit has reduced its capacity growth plans for November and December by about 17%, Brandon Oglenski, airline analyst at Barclays, said earlier this week.

“As previously mentioned, Spirit has implemented a comprehensive plan to help us become more competitive, strengthen our balance sheet and return to profitability,” CEO Ted Christie said in a note to employees on Friday. “We continue to have productive discussions with our bondholders and are focused on achieving the best outcome for the company as quickly as possible.”

A Spirit spokesman declined to comment on a Wall Street Journal report that the airline is considering filing for bankruptcy. Spirits consultant Perella Weinberg Partners declined to comment.

Spirit’s stock price fell more than 24% to a record low of $1.69 on Friday. Shares are down nearly 90% so far this year.

Shares of Frontier Airlines, The originally planned merger with fellow budget airline Spirit ahead of JetBlue’s entry in 2022 rose 16% on Friday. Shares of other airlines also rose.