What to Do If You Booked a Flight on Bankrupt Spirit Airlines
Spirit Airlines, a company so famous for being cheap that it’s fodder for memes , filed for bankruptcy Monday. Spirit plans to continue business as usual as it begins repaying its $3.1 billion of long-term debt, according to previous filings .
But if you’ve got a vacation trip coming up that relies on a Spirit reservation or Spirit points you’ve been planning to redeem , it’s natural that you’re a little concerned. Here’s what you need to know.
Why did Spirit file for bankruptcy?
Chapter 11 bankruptcy is not a death sentence for an airline. Unlike a full liquidation, this type of bankruptcy allows Spirit to:
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Restructure your financial obligations
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Continue to work during the bankruptcy process
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Potentially become a more financially stable company.
There are many historical precedents for this. Major airlines that have successfully emerged from Chapter 11 bankruptcy include American Airlines in 2011, Delta Air Lines in 2005, and United Airlines in 2002.
What does this mean to you?
The good news is that your current flight plans will likely not be affected. Spirit has explicitly stated that it expects to continue normal operations throughout the bankruptcy process, while fulfilling existing tickets and allowing customers to continue booking new flights. In the same way, you can continue to earn and use points as usual. “Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal,” the airline said in a statement .
What else can you do
To protect yourself during this uncertain period:
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Pay close attention to your flight route.
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Please check Spirit’s official communications regularly.
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If possible, have a backup travel plan.
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Consider travel insurance for future bookings.
Remember that many airlines have successfully emerged from Chapter 11 bankruptcy while continuing to serve millions of passengers. As long as there is uncertainty, there is no need to panic.