For years, its bright yellow planes have been a staple at beaches, theme parks and airports near the Las Vegas Strip, and are the plane that price-conscious customers fly on a tight budget.
But with the holidays just weeks away, there are real concerns about Spirit’s future.
In late August, the ultra-low-cost airline filed for Chapter 11 bankruptcy for the second time in less than a year.
The company will continue to operate while restructuring and restructuring, and is confident about the path ahead.
But some industry analysts and financial experts worry the airline faces a bleaker financial outlook than any major U.S. airline has had in decades.
“It’s almost a negative sight for them,” said Ahmed Abdelghany, a former airline executive and associate dean at Embry-Riddle Aeronautical University. “They’ve lost a lot of consumer confidence.”
In recent weeks, Spirit has pulled out of cities it serves, cut routes and furloughed flight attendants while trying to appease consumers with new credit card offers, bonus points and its signature discounted fares.
Now, with reservations for Thanksgiving and Christmas in full swing, consumer response may be the ultimate test, and questions abound.
Will the flight depart if you book on Spirit? If a flight is cancelled, can passengers get a refund? What does Spirit’s plight mean for travelers, whether they fly with the discount airline or not?
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We will try to answer as many questions as possible.
What happened to Spirit Airlines?
Think of Spirit’s problems as a perfect storm.
The entire U.S. low-cost airline industry is facing challenges in the wake of the coronavirus pandemic: Consumers are flocking to large network airlines with lie-flat seats, strong loyalty programs and long-haul flights.
But Spirit also faces mounting debt, a failed merger attempt and — under circumstances beyond its control — engine problems that grounded many of its planes.
The Dania Beach, Florida-based airline’s financial outlook grew bleaker after its first bankruptcy this spring as consumers tightened spending and lower fares cut into airline profits.
Spirit re-entered Chapter 11 on August 29, but not before executives expressed “serious doubt” in a federal filing (PDF link) about the company’s ability to continue operating if the outlook doesn’t improve.
What does Spirit’s woes mean for consumers?
Which brings us to the million-dollar question: Are there risks in booking a flight on Spirit Airlines if you’re planning a vacation or vacation home?
it’s complicated.
Business as usual – for now
For one thing, if you went to the airport to take a Spirit Airlines flight today, you probably wouldn’t notice anything out of the ordinary.
“I think as a consumer you should feel relatively safe,” said Chris Anderson, who studies the airline industry at Cornell University’s Johnson School of Business.
smaller network
“At the same time,” Anderson added, “there’s going to be a lot of … uncertainty or volatility in their networks.”
Meaning, fewer flights.
As of Oct. 6, Spirit expects the number of flights in the fourth quarter to be 28% lower than the same period last year, according to aviation analytics firm Cirium.
Okay…so are holiday flights safe?
If your flight has been cancelled, you probably already know that and should be refunded.
Additionally, while Spirit did announce plans to cut 40 routes last week, executives said the company did no There are plans to exit more cities in the near future.
While nothing is guaranteed, this could bode well for passengers eyeing Spirit Airlines flights between now and the end of the year.
Will Spirit close in 2026?
In the long term, there are still many questions.
Last week, Spirit Airlines celebrated a “significant step” in the company’s stability, signing an agreement with the Irish company that leases many of its aircraft.
However, prior to the deal, analysts at Raymond James believed that Spirit would likely be forced into Chapter 7 liquidation in early 2026.
In this case, the airline may cease operations completely or even suddenly ground its aircraft.
Industry analyst Savanthi Syth told TPG that last week’s deal has reduced that risk.
But she said “how long Spirit can hold on, and its ability to survive,” will depend on additional agreements the airline reaches with its unions and partners.
“I think it’s very likely,” Seth added, “that Spirit will be significantly smaller at the end of this process.”
To that end, Spirit said on Friday it would retire more than 100 aircraft, a move expected to save the company hundreds of millions of dollars annually.
What you need to know if you’re booking a Spirit Airlines flight
It turns out, however, that there are a few things travelers should know.
DOT refund rules
If you book a Spirit Airlines flight and your flight is canceled (for whatever reason), you should still take appropriate protective measures.
First, U.S. Department of Transportation regulations guarantee prompt refunds to customers when airlines cancel flights.
Cornell’s Anderson thinks travelers who book Spirit Airlines tickets will get their money back, even if the airline’s financial situation one day leads to a worst-case scenario closure.
“I think consumers will become whole,” he said. “I think we have checks and balances in place.”
Learn more: Getting a refund for a canceled or delayed flight: What to know in 2025
Should Spirit customers purchase travel insurance?
For added security, how about a travel insurance plan? After all, there are plans that cover an airline’s financial default.
Chrissy Valdez, senior director of operations at insurance marketplace Squaremouth, said new bookings may not qualify for that coverage.
This is because, at this point, Spirit’s bankruptcy may be considered a “known event,” similar to a pre-existing situation.
Travel credit card with insurance
However, savvy travelers may have better luck with a credit card with built-in travel insurance—as long as they use the card to book their trip.
“Many credit cards with built-in travel protection include trip cancellation and interruption insurance, which sometimes may cover the travel provider’s financial bankruptcy or default,” Valdez said, but he cautioned that every policy is different.
Here are some of our favorite credit cards with travel insurance.
Read more: Should you buy travel insurance if you have credit card protection?
In any case, please book with a credit card
Regardless, we recommend using your credit card to book Spirit Airlines flights (all flights, actually) and not just to earn points.
If all other refund efforts fail, federal law may be on your side.
The Fair Credit Billing Act gives consumers the right to dispute credit card charges for services that were paid for but not provided, so this could be a backup way to recover fees paid for flights that didn’t take off.
How about a free spirit spot?
Technically, airlines control their frequent flyer awards, and if the airline liquidates, those points may disappear with the airline.
However, that doesn’t stop competitors from stepping in to try to win over passengers who fly with Spirit Airlines.
We may see other airlines offering points or status matches to Free Spirit loyalists — top rival Frontier Airlines has already dabbled in this space — but there’s a lot of uncertainty in this area.
What a smaller Spirit Airlines means for airfares
Even if you’re not a frequent Spirit Airlines flyer, you’re feeling the impact of the airline’s shrinking presence at airports across the country.
“Even if you’ve never flown with Spirit, you can thank them because you’re flying with a cheaper airline,” said Scott Keyes, founder and chief flight expert at Going. He pointed to research showing that rival airlines historically cut prices by an average of 19 percent on Spirit’s routes.
“In a world without Spirit, Delta could let people pay $300 or more for a flight from New York City to Miami,” Case said. “But when Spirit offers the same route for $49, it forces Delta to lower its fares or risk losing customers.”
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