Spirit Airlines filed for Chapter 11 bankruptcy protection on November 18, 2024, in a move that has left travelers with questions about their impending flights. The legal process gives the airline permission to reorganize debts while still staying operational. For passengers who have booked flights with Spirit, it will be important to understand what this filing could mean to navigate their travel plans.
What does Chapter 11 bankruptcy mean?
Chapter 11 bankruptcy, also known as “reorganization” bankruptcy, allows a company to renegotiate its debts while staying open. It’s intended to get the business back on its financial feet, paying off creditors over time. Spirit aims to take advantage of the moment to work out its more than $9 billion debt and clean up its balance sheet better.
Will my flight be affected?
However, despite the bankruptcy filing, Spirit Airlines has allowed passengers to know that its operations would be undisrupted for now and it will continue business as usual. Spirit has said that:
- Flight operations would remain undisturbed: It is expected that Spirit would not make huge cuts to its flying schedule. This includes holiday-season flights, crucial for travelers booking Thanksgiving trips.
- Bookings and loyalty points remain valid: Guests can book new flights and use all existing tickets, credits, and loyalty points with no interruption. The carrier has indicated that its Free Spirit loyalty program would remain active during this transition.
How to check your flight
The services are recommended to monitor their flight status as a precaution. The followings are the ways to do this:
- Check flight notifications: Keep an eye on notifications from Spirit Airlines regarding any changes to your flight schedule. The airline will communicate any adjustments or cancellations directly to affected passengers.
- Utilize online tools: Visit the Spirit Airlines website or use their mobile app to check real-time flight statuses. This can provide immediate updates on any potential delays or cancellations.
What if my flight is canceled?
If your flight is canceled or a significantly long delay, a threshold that’s at least three hours on domestic flights, new rules for the Department of Transportation might mean you can get a full refund. Here’s what passengers should be aware of in these situations:
- Refund eligibility: In case your flight has been canceled due to a decision by the operational carrier regarding bankruptcy or other similar issues, then there is a facility to claim a refund related to your ticket cost.
- You’re eligible for a refund if the airline canceled your flight, regardless of the reason, and you choose not to travel.
- You’re also entitled to a refund if the airline made significant schedule changes or significantly delayed your flight.
Where to claim your refund
- US Department of Transportation (DOT): You can file a complaint against the airline or ticket agent with the DOT at https://secure.dot.gov/air-travel-complaint or call (202) 366-2220
- Airline’s customer service: Contact Spirit Airline directly to request a refund. They’re required to provide refunds promptly, within seven business days for credit card purchases and 20 calendar days for other payment methods.
- Ticket agents or online travel agencies: If you booked through a ticket agent or online travel agency, contact them directly to obtain a refund.
Alternative travel options
If cancellations happen near your departure date, alternative travel may become difficult to obtain because other airlines may have limited availability and may charge higher prices.
Potential future changes
Although Spirit has pledged to operate flights during its bankruptcy, travelers should also be prepared for possible changes in service levels:
- Flight cuts: Before filing for bankruptcy, Spirit had already announced plans to cut its operating capacity by nearly 20% from figures seen the year before. This could very well continue since the company might look toward cost-saving measures while restructuring.
- Long-term forecast: Although the bankruptcy process will be concluded at the beginning of 2025, Spirit intends to emerge with better financial strength. Further operational difficulties could establish how available and how much to charge for the services will be within the next twelve months.
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