Spirit Airlines could shut down: What travelers should know

Key Points:

• Spirit Airlines faces imminent risk of shutting down and liquidating due to surging jet fuel costs, with reports suggesting cash depletion could occur as soon as this week; the airline has struggled financially since the COVID-19 pandemic and filed for bankruptcy twice since late 2024.
• Despite ongoing operations and ticket sales, Spirit is shrinking its fleet and restructuring in hopes of exiting bankruptcy, but recent aircraft movements to storage facilities raise concerns about potential liquidation.
• Passengers holding future tickets may seek refunds through credit card chargebacks if Spirit ceases operations, though reimbursement is not guaranteed; debit card users have fewer protections, and cancellations for personal reasons are not covered.
• Travel insurance policies included with major credit cards typically exclude coverage for airline insolvency, but stand-alone travel insurance might provide some protection depending on the policy and timing of ticket purchase relative to Spirit’s bankruptcy filings.
• Travelers affected by potential Spirit shutdowns should prepare for higher costs and limited options when rebooking flights, remain alert for possible "rescue fares" from other airlines, and consider flexibility in travel plans to mitigate disruptions during the busy spring and summer travel seasons.