US distribution carrier Spirit Airlines has filed for insolvency protection after a long run of monetary losses and a series of failed union attempts.

On Monday, the Florida-based airline said it had arranged an agreement to restructure its debt and raise money during a insolvency procedure that is expected to last until early 2025.

During that period, Spirit’s operations will continue as normal and passengers will be unaffected, it said.

Spirit, which has not recorded a packed-year returns since the commence of the Covid-19 pandemic, is the first US airline to file for insolvency in more than a decade. American Airlines declared insolvency in 2011 to cut labour costs during a period of high fuel prices.

In a statement, Spirit said the insolvency procedure – known as Chapter 11 – will not impact employee pay or payments to aircraft leasing companies.

The corporation will be de-listed from the recent York ownership trade in the “near term” and ownership shares will be cancelled, with no worth, as part of its restructuring, Spirit said.

Despite powerful demand, the no-frills airline posted losses of approximately $360m (£285m) in the first half of this year.

Competition in the distribution trip trade has been rising and Spirit has also been forced to ground aircraft as a outcome of mechanical issues with some engines, which drove up operating costs.

Earlier this year, Spirit’s highly anticipated $3.8bn ($3bn) union with another US carrier, JetBlue, collapsed. A Massachusetts judge blocked the deal, arguing that a union would reduce competition in the trade.

Another attempt to merge, with Frontier Airlines in 2022, fell apart after Spirit was outbid by JetBlue.

Originally a long-haul trucking corporation founded in 1964, which pivoted to aviation in the early 1980s, the firm rebranded as Spirit in 1992. It is considered a pioneer in distribution flying, forgoing many amenities that are standard on other airlines in order to keep ticket prices low.