Spirit Airlines Bankruptcy: Frequently Asked Questions
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Update: On Nov. 18, 2024, Spirit Airlines officially filed for Chapter 1 1 bankruptcy protection. This article has been revised with current information.
Spirit Airlines has filed for Chapter 11 bankruptcy protection after merger talks with Frontier Airlines collapsed. This comes after a merger agreement between Spirit Airlines and JetBlue Airlines fell through earlier in 2024.
Restructuring during the Chapter 11 process will allow Spirit to continue operating while reducing costs and making payments toward restructured debt. According to a press release from Spirit, "guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal."
Here's what the airline's bankruptcy might mean for you.
» Learn more: The 6 types of bankruptcy
I have a flight booked with Spirit. Will it be canceled?
The answer is “maybe.” An airline filing for bankruptcy does not necessarily mean your flight will be canceled. The Chapter 11 rules will allow Spirit to restructure their debt payments and be permitted to continue operating while cutting costs. Those cost reductions could mean fewer routes, leading to potential cancellations.
But successfully restructuring the debt is "not expected to impair" customers, according to a filing the airline made with the U.S. Security and Exchange Commission on Nov. 12.
The exact outcome remains to be seen. If your ticket does end up getting canceled, contact the airline to understand your options for a refund or rebooking.
» Learn more: 8 moves if your flight is canceled or delayed
Is Spirit planning to cut any routes?
In October, Spirit cut 30 routes across the United States. Travelers on canceled flights were able to contact the airline for a full refund or a rebooking on a different flight.
Since then, the airline hasn’t announced any additional route cancellations. That could change as additional cost-cutting measures are implemented. If you're ticketed on a route that gets cut, contact the airline to understand your options for a refund or rebooking.
» Learn more: Do airlines owe you money for delays or cancellations?
What will happen to my Free Spirit points?
It's too early to tell. According to Spirit, points in the Free Spirit program can continue to be used as normal. The airline will likely ask the court to grant certain types of relief to continue regular operations, likely including the loyalty program.
Assuming the request is granted, the loyalty program will continue and your points will remain. There's some precedent for this: In 2011, American Airlines filed for Chapter 11 bankruptcy, and its loyalty program was permitted to continue without interruption.
However, the final outcome will depend on Spirit's debt negotiations during bankruptcy proceedings.
What will happen to my Spirit Airline voucher?
As Spirit continues to operate under bankruptcy protections, it will likely have to honor your voucher or airline credit. The Nov. 18 press release confirms that, as of now, the airline will continue to accept all credits as normal.
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