US Department of Transportation (DOT) Secretary Sean Duffy announced on Saturday (local time) a number of measures the department is taking to help Spirit Airlines customers and their employees.
In a post on X, Duffy wrote, “In coordination with our airline partners, we are taking ACTION to bring relief to Spirit customers and its employees. From limited fares to flyers that need to be rebooked to employees looking for job opportunities, there is a lot of information you should know about.”
His remarks came after US low-cost carrier Spirit Airlines announced on Saturday that it was ceasing operations with immediate effect. The company has been reeling under the weight of rising jet fuel prices in the wake of the US-Iran war that began in late February and has seen Tehran close the Strait of Hormuz.
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How does DOT help Spirit Airlines customers and employees?
In his post, Duffy said, “United, Delta, JetBlue and Southwest are all cutting fares specifically for Spirit customers who now need to rebook canceled flights.” He added that to access these special prices, individuals will need to provide a Spirit flight confirmation number and proof of payment as a minimum. He noted that individuals should check with each airline for additional details.
For travelers worried about airfare, Duffy noted that Delta and American Airlines offer discounted fares on Spirit’s high-volume routes. He added: “Allegiant has also committed to freeze fares on routes that overlap with Spirit. To support affected passengers, Frontier is offering up to 50% off base fares across its network through May 10.”
In terms of employee support, the DOT Secretary said that most major U.S. airlines offer passport benefits and replacement jump seats to Spirit Airlines pilots, flight attendants and other employees who need to return home. In addition, these airlines also give Spirit employees priority interview opportunities to expedite hiring.
Both American Airlines and United Airlines are setting up dedicated microsites to help Spirit employees further their aviation careers.
Duffy shares update compensation rules
Duffy shared a reiteration of the reward rules, saying that it will automatically process refunds for flights that were purchased using a credit or debit card, per the airline’s instructions.
Separately, ticket holders can also:
- Contact your credit card company: If you paid with a credit card, you may be protected under the Fair Credit Billing Act. Ask your publisher for a chargeback for services not provided.
2. Check your travel insurance: Contact your insurer to see if your policy covers ‘insolvency’ or ‘termination of service’.
3. File for Bankruptcy: You can file a formal “proof of claim” with the bankruptcy court. This process may take some time and may only result in a partial refund.
Read also | Spirit Airlines in danger of closing amid ongoing war in Iran?
Spirit Airlines is ceasing operations
Spirit Airlines, once a disruptive low-cost carrier that shook up the industry with its irreverent advertising and deep discounts, announced Saturday that it was going out of business after 34 years. The airline, which once operated hundreds of flights a day and employed nearly 17,000 people, said it had “initiated an orderly winding down of our operations with immediate effect”.
The low-cost airline has been struggling financially since the coronavirus pandemic, weighed down by rising operating costs and mounting debt. By the time the airline filed for Chapter 11 protection in November 2024, it had already lost more than $2.5 billion since the start of 2020.
The Trump administration considered a government bailout for the cash-strapped airline to prevent it from shutting down; however, no agreement was reached. US President Donald Trump floated the idea of a bailout last week after the airline found itself in bankruptcy proceedings for the second time in less than two years.
Key things
- Spirit Airlines ceased operations due to significant financial losses and rising costs.
- The US Department of Transportation is implementing measures to support affected customers and employees.
- Passengers have access to reduced fares on other airlines and may need to apply for a refund.
