Spirit Airlines filed for the second time in late August for the 11th bankruptcy protection. Since 2011, its previous bankruptcy in November 2024 has become the first major airline in the United States.
Understandably, this news may disturb people with mental booking customers. The operator said it should be working properly when bankruptcy proceedings are underway, but since the second bankruptcy, it has cut the route and at least two competitors have added services to the mental market in case of a “sudden collapse of the spirit.”
This is what you need to know.
Will Spirit Airlines continue to fly?
Yes. The airline said it will be as usual as it passes through the bankruptcy process. Spiritual plans to operate its flights and pay employees before filing for bankruptcy.
In the U.S. aviation industry, there are actually strong precedents. American Airlines, Delta Airlines and United Airlines have all filed for bankruptcy over the past two decades, and it has been very normal in the process. The United States, which sought Chapter 11 bankruptcy protection in 2011, is the latest in major airlines. It was part of a merger with American Airlines, emerging from bankruptcy protection in 2013, which made it the largest airline in the world at the time.
But given this is Spirit’s second bankruptcy in less than a year, the focus on its long-term prospects is more focused than the prospect of the first filing. The spirit seems to continue flying to December, when more updates may appear about the carrier’s financial situation.
Will the spirit cancel flights or routes due to bankruptcy?
As part of the restructuring, the spirit has ended its service to 11 cities.
More broadly, the spirit is seeking to overhaul its business model to focus on profitability, so it is impossible to rule out other changes when the carrier navigates the Chapter 11 process.
It is unlikely to cancel a flight in a short period of time. Spirit intends to keep its release schedule, but long-term changes could lead to flight changes later this year. As the spirit tries to move to a more profitable business model, customers should be prepared to continue to undergo incremental changes and updates.
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Spirit Airlines and the upcoming holidays
Spirit said it is currently expected to run a normal schedule, including during the upcoming holiday period.
That is, there is no guarantee of how the mental schedule will be maintained. More updates on the financial position of the airline are expected in December, when we may learn more about the long-term trajectory of the spirit. Travelers flying during the holidays (especially in late December and beyond) may want to consider ensuring travel or making backup plans.
What happens to my frequent flyer points and honors?
Spirit says it will continue to run its free spirit loyalty program normally, so all income and redemption should be unaffected. The same is true for any coupons or points from the airline.
The airline also said that the terms of its co-credit card will not be affected as the lawsuit is issued.
If the spirit does go bankrupt, its views and credits will not be respected. That being said, airlines who want to win a spiritual customer may decide to respect all or part of the outstanding points balance – but there is no guarantee that this will happen.
Will the spirit go bankrupt?
This is where it becomes blurry. During the first bankruptcy, the spiritual words were: “Absolutely not!”
However, the second bankruptcy brought more uncertainty. Spirit has warned investors in early August that it may be forced to shut down if its financial performance does not improve. The subsequent (second) bankruptcy filing made the spirit more concealed to reorganize, hoping to become a streamlined airline.
Chapter 11 The bankruptcy process is designed to protect the company from creditors while trying to restructure its financial and business model. This is what the spirit is doing. This is unlike Chapter 7 bankruptcy, which usually sees a company suspending operations and selling its assets.
However, at the end of the day, it is impossible to tell the future of the spirit exactly. The major U.S. airlines filing for Chapter 11 bankruptcy protection for this century have been flying and often have stronger and more beautiful competitors. This includes the United States, Delta and Manchester United. But the airlines that filed for bankruptcy more than once did not show up – the long-term prospects of the spirit are absolutely uncertain.
Currently, customers should expect the spirit to continue flying – but they should also monitor the news for updates, especially for more than a few months in booking.
How do I protect my spiritual booking?
If you have booked a spirit ticket, then the options to pursue other protection will be limited. However, there are a lot you can do for new reservations in case of time and time.
Consider using the credit card that comes with travel protection. This may include travel interruption coverage that can help you recover the cost of new trips when you cancel your flight. As always, make sure to read the beautiful print before booking so you know what is covered.
Travel Guarantee: Best Travel Credit Card
You can also purchase your travel insurance covered in the event of a cancellation of flight or unexpected trip interruption. TPG has the latest information on how to evaluate credit card and travel insurance coverage.
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