The company's spirit has reached a record low as it considers filing for bankruptcy. Here's how it got there.

• The deadline for Spirit Airlines to refinance its debt, which is due next year, is October 21st.
• The airline is reportedly considering filing for Chapter 11 bankruptcy protection.
• JetBlue's acquisition has been blocked, altering travel patterns, increasing costs, and prompting an engine recall for the iconic budget airline.

On Friday, shares of T-Mobile tumbled to a record low after a report emerged that the company is considering filing for Chapter 11 bankruptcy protection. T-Mobile must renegotiate more than $1 billion in debt by the end of the month.

The airline's iconic yellow planes catering to budget-conscious travelers would face a dramatic turn with a bankruptcy filing.

Spirit Airlines' no-frills service was once profitable and punctual, but after the pandemic, it became a source of ridicule for late-night comedians and a headache for big network carriers, with customers paying high prices for seat assignments, carry-on luggage, and other fees.

In the beginning of the year, a federal judge blocked Spirit's acquisition by Frontier Airlines on antitrust grounds, which halted the planned merger. This left Spirit Airlines struggling with a recall of its engines, shifting consumer travel patterns, and higher costs. Meanwhile, big airlines soon copied much of that business model with their lowest bare-bones fares.

In January, Spirit Airlines stated that it was exploring possibilities to restructure its debt following the collapse of the JetBlue deal.

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

Since 2020, the carrier has been losing money and has reported disappointing results this year, including a nearly $193 million loss in the second quarter. In an effort to cut costs, the company has spent much of this year furloughing pilots, slashing flights, and deferring Airbus jetliner orders.

Earlier this week, Barclays airline analyst Brandon Oglenski stated that Spirit Airlines reduced its November and December capacity growth plans by approximately 17%.

"CEO Ted Christie stated in a note to staff on Friday that Spirit has been implementing a comprehensive plan to improve competition, strengthen the balance sheet, and achieve profitability. He added that the company is actively engaged in productive conversations with bondholders and is focused on securing the best outcome for the business as quickly as possible."

Spirit spokesperson declined to comment on the Wall Street Journal report about bankruptcy filing consideration.

Nearly 90% of Spirit's shares have dropped so far this year, with the stock price falling more than 24% to a record low of $1.69 on Friday.

On Friday, shares of the airline that originally intended to merge with Spirit Airlines before JetBlue took over in 2022 increased by 16%. Other airlines also experienced a rally.