Spirit Airlines’ deep discounts could be worthless if the airline suspends operations.
Spirit Airlines may go bankrupt. Should I buy a ticket?
Booking a flight on Spirit Airlines now is cheap, but can be risky as the company is on the verge of going out of business.
- Spirit Airlines is facing serious financial troubles, and analysts are warning it may soon cease operations.
- Travelers who book with Spirit face a high-risk, high-reward situation, with lower fares but the possibility of flight cancellation.
- If an airline goes out of business, passengers could be stranded and face increased prices for last-minute flights on other airlines.
According to Google Flights, if you want to fly from Fort Lauderdale to New York next weekend, you’ll only need to pay $146 on Spirit Airlines, which is at least $100 cheaper than on other airlines. But this deal comes with a big potential downside.
Spirit Airlines is in serious financial trouble. Analysts have warned that the airline could be grounded in the next few days, with the government in Washington reportedly considering a bailout package that would allow the airline to continue operating.
“This is really uncharted territory because we’ve never seen anything like this happen on just one airline in the United States outside of COVID, outside of 9/11,” Katie Nastro, a travel expert at airline ticket trading site Going, told USA TODAY. “This is a very strange scenario that Spirit is currently in.”
For travelers, buying Spirit tickets now can be a high-risk, high-reward situation. You could end up getting an incredibly cheap vacation, or if the airline disbands while you’re on your trip, you could end up stranded and having to pay directly.
“If you can tolerate that risk, please do so. But personally, I’m not going to book a Spirit ticket right now until we know more. You’ll have better odds if you postpone your trip for a week,” Nastro said.
If you’re planning on using Spirit in the near future, here’s what you need to know.
What happens if you book a ticket and the airline goes bankrupt?
It may be a difficult time.
Airlines sometimes offer discounted “rescue fares” for passengers stranded when a competitor goes out of business, but they aren’t always cheap or easily available.
“I’m hesitant to say it’s going to be cheap flights,” Nastro said. “It’s certainly cheaper than the last-minute flight, but is it cheaper than a $49 Spirit flight? No, you’ll probably end up paying more than the entire round-trip Spirit flight.”
William J. McGee, senior fellow for aviation and travel at the American Economic Liberties Project, added that other airlines’ flights are likely already full with their own passengers, especially heading into the summer, and those airlines may not have enough seats anyway.
“The load factor is so high, how can airlines make up the slack here?” McGee said.
Make a reservation with a credit card
If you’re willing to take the risk, Nastro says you should always pay for your flight with a credit card. That’s because it’s the best way to protect your purchases if the airline goes bankrupt.
Before the airline’s limited remaining funds can be used to refund canceled flights, other creditors will be in line for repayment before the traveler.
“Please dispute the charges as there will be no service provided at that time as there is no seller,” Nastro said.
Still, McGee cautioned that even that process could be a gamble, as credit card issuers may not be required to issue refunds if a merchant goes bankrupt.
The Department of Transportation outlines the process for submitting a claim to your credit card company.
Additionally, travel insurance may not cover bankruptcy as a reason for a claim, so check your policy before relying on it.
It could also be a good opportunity to use your Free Spirit Points. Free Spirit Points can disappear if their value declines if the airline goes bankrupt or needs to be reorganized.
Know the alternatives
Nastro said if you’re booked on Spirit Airlines, it’s also a good idea to be aware of alternative flights and return home in case the airline goes out of business while you’re out. You might also consider booking a refundable ticket or one that allows you to use miles from another airline as a backup. Be sure to cancel your backup plan before boarding a Spirit flight.
This article has been updated to update the headline.
Zach Wichter is a travel reporter and writes the Cruising Altitude column for USA TODAY. He is based in New York and can be reached at zwichter@usatoday.com.
