From CNBC: 2024-11-18 08:53:06

Spirit Airlines has filed for Chapter 11 bankruptcy protection, citing financial struggles worsened by the pandemic and other setbacks. Despite this, the airline reassures customers that flights can still be booked and loyalty points used normally.

Filing for bankruptcy doesn’t mean Spirit will cease operations, but may lead to restructuring. Travelers should watch for schedule changes or potential layoffs. While the airline plans to keep its holiday season schedule intact, further cuts may follow.

If Spirit cancels flights, U.S. rules entitle customers to cash refunds. However, bankruptcy protection could make refunds harder to obtain. Travel insurance may cover expenses affected by airline disruptions. Customers should consider booking refundable tickets and using credit cards for added protection.

Spirit looks to exit bankruptcy protection in early 2025. The airline could emerge as a more efficient carrier, with potential asset acquisitions by other airlines. A merger with Frontier or other deals may be on the horizon, especially as industry experts anticipate a favorable environment for such agreements.



Read more at CNBC: What travelers need to know about Spirit Airlines’ bankruptcy