If you’re planning to travel with Spirit Airlines during the holidays, there’s no need to worry for now, despite the airline filing for bankruptcy on Monday. Spirit has assured passengers that operations will continue as usual while it addresses its $3.1 billion in long-term debt, as per regulatory filings.
“Guests can continue to book and fly without interruption and can use all tickets, credits, and loyalty points as normal,” Spirit said in a statement.
However, changes could arise in the coming months as companies undergoing bankruptcy often restructure operations to regain financial stability. This could potentially affect areas such as Spirit’s frequent flyer program and route offerings, according to Zach Griff, senior reporter at The Points Guy.
“In the immediate short term, I wouldn’t necessarily expect too many changes,” Griff told CNN. “Thanksgiving and Christmas flyers, I’m not as worried. But I would be cautious about booking flights far into the future given the airline’s restructuring process.”
Spirit announced that its bankruptcy plan and negotiations with creditors aim to reduce its debt and improve financial flexibility, with expectations to emerge stronger by early next year. The airline has already cut multiple routes this year, including 32 in September and 24 in November.
Over the years, major U.S. airlines like United, Delta, and American have also filed for bankruptcy, and Spirit remains optimistic about its future. Despite failed merger attempts with Frontier Airlines and JetBlue Airways, CEO Ted Christie stated on Monday that Spirit’s transformation will focus on enhancing its guest experience, offering better travel options, and strengthening its financial position.
Known for its ultra-low-cost airfare model, Spirit’s average roundtrip fare is $140 (excluding taxes and fees), slightly higher than competitors Frontier ($136) and Allegiant ($134) but still much lower than major carriers. This pricing strategy has historically pressured legacy airlines to offer similar basic economy fares, keeping competition alive in the market.
“Without Spirit’s competitive pricing, legacy carriers would have more freedom to increase fares,” Griff noted, emphasizing the importance of Spirit’s survival for consumers.
Despite reassurances, some travelers may feel uncertain about the airline’s future. Sarah Foss, global head of legal at Debtwire, noted that the stigma of bankruptcy could impact customers’ choices. While there’s no immediate cause for concern, she advises travelers to consider Spirit’s financial situation when making future bookings or using loyalty miles.
“For now, it seems like a standard bankruptcy filing,” Foss said. “But if you’re deciding which carrier to book with, Spirit’s bankruptcy might make you hesitate.”
