Spirit Airlines may not make it much longer. Two reports say the ultra-low-cost carrier is at risk of shutting down and liquidating as soon as this week, basically flipping the usual “book and hope” rhythm into something more urgent.
Misryoum newsroom reported late Wednesday that Spirit expected to run out of cash imminently because of surging jet fuel costs. Misryoum editorial team noted that the airline has struggled to turn a profit since the start of the COVID-19 pandemic in 2020, and it has now filed for bankruptcy twice since late 2024—most recently in August. Spirit also has a track record of trying to pull itself out: it hoped to exit the second bankruptcy by this summer after reaching an agreement with creditors in late February.
On Thursday, though, Spirit continued to operate flights and sell tickets. The tension is that the airline was already shrinking its fleet and reconfiguring its network as part of an effort to find a more viable business model—so the “still flying” part doesn’t necessarily mean everything is fine. In other words: it’s possible to be open for business and still be in a very bad place.
There’s been a practical, real-world clue too. Numerous Spirit aircraft have been spotted flying to a storage facility at Southern California Logistics Airport (VCV) in Victorville, California, in recent days. It’s not clear whether those planes are headed there for liquidation plans or simply as part of Spirit’s planned restructuring. Either way, you can imagine the airport vibe when those aircraft roll in—metal cooling down, the faint whir of ground equipment—kind of hard to ignore when you’ve got a trip coming up.
If you’re scheduled to fly with Spirit soon (or you’re already stranded), the biggest immediate question is what happens to your money. Typically, in a bankruptcy and liquidation situation, consumers are among the last to get refunds. Funds and assets tend to go to creditors first, then other parties, and finally customers and employees near the bottom of the list. Still, passengers with future tickets should be able to get some form of refund if they paid by credit card.
Here’s the play: most major credit cards offer consumer protections that let holders dispute charges for goods and services the airline fails to deliver. Call the number on the back of your credit card, tell the representative you want to dispute a charge, and follow the instructions to submit a claim. Misryoum editorial desk noted that there’s no guarantee you’ll get your refund—especially when carriers are insolvent.
Debit card purchases are trickier, and the U.S. Department of Transportation says it’s possible, though less likely, to file a dispute for undelivered services. But again, call your card issuer to learn your options. Also keep in mind that chargebacks generally relate to the vendor’s fault—if you choose to cancel a trip that isn’t refundable, you can’t use a chargeback to undo it.
Travel insurance could help in some situations, but don’t assume it covers everything. Policies—stand-alone or bundled through certain credit cards—may cover alternate travel arrangements, hotels, and expenses like new clothes, phone chargers, meals, and luggage. However, Misryoum newsroom reported that many credit card travel insurance protections may not apply if the airline goes out of business. For example, benefit guides for the Chase Sapphire Reserve and the American Express Platinum Card list exclusions tied to “common carrier” and “financial insolvency.” Stand-alone insurance might be different, but Spirit filed for bankruptcy in August, which could complicate coverage for tickets bought after that filing since the bankruptcy counts as a “known event.”
If your flight gets canceled, you may have to pay for a new one out of pocket, at a time when summer travel is approaching and fares can be unforgiving. Try searching broadly across airlines, and don’t dismiss connections if you can—sometimes the fastest way home involves a layover you didn’t plan for. You may not find great deals using miles, since airlines often price award seats dynamically, but it’s still worth checking if you’ve got a big stash.
There’s also a possibility—just a possibility—of “rescue fares” from other airlines, especially for passengers who are already traveling or who have trips imminent. Misryoum analysis indicates that in past airline shutdowns, carriers serving overlapping markets sometimes offer discounted fares to help stranded passengers. Misryoum will update this section if rescue options or plans surface, though there’s no guarantee that will happen—particularly as other airlines wrestle with high fuel costs too.
Bottom line: a Spirit liquidation would be a grim end for an airline people love to criticize and also rely on. But if Spirit insolvency leaves you stuck, you may have some ways to recover airfare—and maybe some expenses—depending on how you paid and what coverage you have. With spring break underway and summer travel looming, though, this is a hard moment to book last-minute without a little creativity and flexibility. And honestly, if you can adjust, it might be the difference between “okay” and “why is this so expensive?”
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