Source: The Points Guy
Summary
Spirit Airlines is at risk of shutting down and liquidating as soon as this week due to surging jet fuel costs. The airline has struggled to turn a profit since the start of the COVID-19 pandemic and has filed for bankruptcy twice since late 2024. If Spirit stops flying, passengers may be able to get some form of refund if they paid by credit card. Travel insurance may also help, but it depends on the specific policy. Those with imminent travel or who are in the middle of a trip and find themselves stuck may need to book new flights at high prices.
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The escape is carefully planned.
Spirit Airlines’ potential liquidation may mean the end of the ultra-low-cost carrier. Passengers may be able to get refunds through credit card companies or travel insurance, but it’s not guaranteed. Those affected may need to book new flights at high prices. The airline’s demise could also lead to higher prices for other airlines. Spirit’s struggles have forced legacy airlines to lower their prices to compete.
In the end, a Spirit liquidation would be a sad end to the airline’s story, but it may also be a wake-up call for the industry to re-evaluate its business models.
Author: Evan Null
