Spirit Airlines, a prominent name in budget air travel, has filed for Chapter 11 bankruptcy protection, citing a series of financial setbacks, a failed merger attempt, and intensified competition. The filing, made early Monday, comes with a prearranged agreement with bondholders, including $300 million in debtor-in-possession financing, to support the airline through its restructuring. The company aims to exit bankruptcy by the first quarter of next year.

A Spirit Airlines flight en route to Port-au-Prince, Haiti, was struck by gunfire on Monday, resulting in minor injuries to a flight attendant. Spirit confirmed that its flight from Fort Lauderdale, Florida, was rerouted to the Dominican Republic following the incident. An inspection of the aircraft revealed damage consistent with gunfire. No passengers were injured, and the injured crew member is receiving medical evaluation. Spirit announced it is temporarily suspending flights to Haiti for further safety evaluation.

Spirit Airlines is set to revamp its merchandising strategy, aiming to cater to higher-end flyers, a shift from its traditional budget-friendly offerings. In a recent Q1 earnings call, CEO Ted Christie outlined the airline's plans, although specifics will be withheld until August. Christie highlighted the necessity of this strategic pivot to attract a broader customer base beyond its core discount-seeking travelers, in response to changing industry dynamics and the need to offset recent financial losses.