According to AAA, this week will mark the busiest Thanksgiving for air travel in history, with more than 5.8 million passengers flying domestically. Only a small percentage of them are booked on Spirit,

Budget carrier Spirit Airlines announced it filed for Chapter 11 bankruptcy on Monday in the face of mounting losses, increased labor costs and a highly competitive air travel market. The airline has failed to return to profitability following the downturn in air travel caused by coronavirus pandemic lockdowns.

Unease around the bankruptcy petition may have some travelers looking elsewhere for flights ahead of the busy holiday travel season. Here's what you need to know.

The disparity in size between the low-priced airlines and the top firms underscores a fissure in the industry separating budget carriers in select markets from the major airlines that dominate flight offerings nationwide, Mike Boyd, president of aviation consulting firm Boyd Group International, told ABC News.

Spirit Airlines said Monday that it's filed for bankruptcy protection and will attempt to reboot as it struggles to recover from the pandemic -caused swoon in travel and failed attempts to sell itself to other carriers.

The company has reassured passengers that its Chapter 11 bankruptcy will not affect their bookings and that staff will still be paid.