(Reuters) -U.S. carrier Spirit Airlines, long known for its no-frills service, said on Wednesday it was pushing ahead with plans to rebrand itself as a premium airline as it emerged from bankruptcy protection after four months.

The Florida-based airline - also known for its bright yellow livery - had filed for bankruptcy protection last November, after years of losses, failed merger attempts and heavy debt levels. It was the first major U.S. carrier to file for Chapter 11 since 2011 and it reported a net loss of $1.2 billion last year.

As part of its turnaround strategy, the company has said it would shift its focus away from price-conscious customers to more affluent travelers, in a move it estimates would generate 13% more revenue per passenger.

To attract customers, the airline plans to redesign its loyalty program and enter into alliances with other carriers.

"Today, we're moving forward with our strategy to redefine low-fare travel with our new, high-value travel options," said CEO Ted Christie, who the company said would remain at the helm.

The company said the financial restructuring has reduced its debt by about $795 million by converting debt into equity. It also received a $350 million equity investment from existing investors to support its future initiatives.

The lower debt and greater financial flexibility have left it better-positioned to return to profitability, Spirit said.

The company said its newly issued shares were expected to trade in the over-the-counter marketplace and it aimed to relist on a stock exchange when it was "reasonably practicable."

Spirit last month rejected a $2.16 billion bid from Frontier Group, which has made multiple attempts to merge with it, saying the offer was less beneficial to shareholders than its restructuring plan.

Spirit's new strategy contrasts with the previous business model that relied on price-sensitive travelers, keeping planes flying more hours in the day and putting more seats on every aircraft.

That playbook produced double-digit operating margins for nine straight years until 2020. But the global pandemic changed the operating environment and travel patterns, and Spirit struggled to adapt.

Consumer demand has shifted in favor of full-service airlines, with middle- and upper-income households fueling the demand for premium travel while inflation disproportionately hurt lower-income spenders. Spirit hopes the revamp of its offering will allow it to tap more high-spending travelers.

The airline is also under pressure from its workers. On Wednesday, Spirit's pilot union asked the company's leadership to communicate a "credible and transparent path" to restoring profitability without hurting the interests of its pilots.

Spirit has had to furlough hundreds of pilots as part of its efforts to cut costs and shore up its finances.