Spirit Airlines has ceased all operations, closed every flight and closed its customer lines, leaving passengers who have booked travel with the carrier in a deeply uncertain situation. The airline’s collapse is the biggest failure of a US carrier in years, and unlike a standard cancellation, there is no single set of rules that dictate what happens next.
What caused the shutdown of Spirit Airlines
Spirit filed for bankruptcy protection for the second time in a year just as recently as August, and its management has quietly prepared a contingency plan — internally referred to as “Plan Charlie” — in case a bailout fails. The worst case scenario has now come true.
Negotiations between the airline’s bondholders and the federal government broke down after a phone call with Commerce Secretary Howard Lutnick, who was pushing for a proposed $500 million government bailout for the carrier. When those talks broke down, Spirit’s CEO concluded that the airline could no longer continue.
Are all Spirit flights canceled?
Yes. Spirit confirmed on Saturday that all flights have been canceled effective immediately and customer service is no longer operational. Travelers currently stranded away from home face the prospect of finding alternative travel at their own expense, at least in the short term.
“The best-case scenario is that other airlines step in to fill the void in trying to carry some of these passengers,” said Kyle Potter, executive editor of Thrifty Traveler.
However, this help is unlikely to be free. When Icelandic low-cost carrier Play collapsed last year, European airline Condor offered discounted rescue fares to affected passengers who had to contact the reservations team directly and provide proof of their original booking. A separate carrier, Icelandair, added capacity on overlapping routes but did not offer reduced fares.
American Airlines has implemented economy fare caps for nonstop routes that overlap with the former Spirit network. Frontier Airlines and United Airlines also said they were preparing to support Spirit customers and employees.
How to get a refund for Spirit tickets
Spirit said it will automatically process refunds for flights booked directly through its own credit or debit card channels. Travelers who booked through a travel agency are advised to contact the agency directly to request a refund.
The situation is considerably more complicated for those who used vouchers, credits or Free Spirit loyalty points to pay for the trip. Spirit said compensation for those passengers will be determined through formal bankruptcy proceedings at a later stage.
That path is slow and uncertain. “Travelers are usually at the end of the line to see some money,” said Katy Nastro, a spokeswoman for the travel deals company Going.
Those with travel insurance may be covered – although the fine print matters a lot. Some insurers may deny claims if the trip was booked after Spirit originally filed for bankruptcy last year.
Your credit card is your strongest protection
Aviation experts advise that passengers who paid by credit card have the strongest position. Initiating a chargeback through your card issuer for services that will not be provided is considered the most reliable way to obtain funds.
“Each bankruptcy shutdown can be different from the last,” said William McGee, senior aviation fellow at the American Economic Liberties Project.
What happens to Free Spirit loyalty points
Travelers who have accumulated points through Spirit’s Free Spirit loyalty program almost certainly face a complete loss of that value. Airline loyalty points have no independent value outside of the program that issues them, and when an airline ceases to exist, those points usually become worthless overnight.
“Over the years, millions of dollars in unused miles and points have become useless due to airline shutdowns,” McGee said.
What Happens to the Spirit Airlines Credit Card?
Despite being Spirit branded, the Spirit Airlines credit card is issued by Bank of America. This distinction is important: the card itself should remain active even after the airline completely ceases operations.
Bank of America retains the ability to convert Spirit-branded card accounts to other products within its portfolio, though the bank has not yet publicly commented on its plans. Cardholders remain responsible for any outstanding balances regardless of what happens to the card’s branding.
Expect higher airfares in the future
Passengers looking to rebook a trip previously planned with Spirit should prepare for significantly higher prices. Rescue fares from competing carriers, if offered at all, will only be available for a limited time. More broadly, airline analysts have warned that removing Spirit’s ultra-low fares from the market is likely to push prices up on routes where the carrier previously operated.
