With news that Spirit Airlines is shutting down operations, travelers with tickets to fly the low-budget carrier are facing canceled flights and grappling with questions about what to do next.
When airlines cease operations, the fallout can be quick, said Lori Brown, a professor of flight science, management and operations at Western Michigan University’s College of Aviation.
“Flights are often canceled within hours or days, leaving travelers stranded,” Brown said. “In most cases, tickets become unusable, and recovery depends largely on how the ticket was purchased. Credit card users may have some protection through charge-backs, while those who paid by debit or cash often face a more uncertain path through bankruptcy proceedings.”
Spirit closure expected to have ‘far-reaching’ impact
There are strong historical parallels for what will likely happen with the closure of Spirit — the second-largest carrier at Detroit Metropolitan Airport with 11.2% market share in 2024, according to a financial report from the Wayne County Airport Authority, Brown said. The authority manages and operates both Detroit Metropolitan Airport in Romulus and Willow Run Airport in Van Buren and Ypsilanti townships.
When airlines abruptly cease operations, “the impacts are immediate, far-reaching, and unevenly distributed across passengers, employees, and the broader market,” she said.
In those situations, other airlines have sometimes stepped up to offer travelers reduced “rescue fares” to get back home, Brown said. However, those reduced rates typically are discretionary and not guaranteed.
United Airlines told the Detroit Free Press on Friday afternoon that it is taking steps to assist travelers affected by a Spirit closure, saying in an email that it is “preparing to support Spirit customers and employees” and “we’ll likely have more to share later.”
The Free Press left messages for Delta Air Lines, JetBlue and American Airlines, but didn’t get an immediate response from any of the other carriers.
Spirit Airlines closure could affect ticket prices
The loss of the ultra-low-cost Spirit Airlines will likely affect the bottom line of consumers.
“The broader implication is that airline failures tend to reduce competition, increase fares, and disproportionately affect budget-conscious travelers and front-line employees,” Brown said. “While the system adapts over time, the short-term disruption is significant, and the long-term effects are felt most strongly in markets that relied on low-cost access to air travel.
“Airlines like Spirit play a critical role in keeping fares low, particularly in leisure markets,” Brown said. “Their business model exerts downward pricing pressure across the system. If that capacity disappears, the immediate effect is usually a reduction in available seats, followed by upward pressure on ticket prices. Competing carriers such as Frontier Airlines and Southwest Airlines often move quickly to absorb profitable routes, but not all service is replaced — especially in smaller or price-sensitive markets.”
In 2024, 1.6 million passengers boarded a Spirit Airlines plane at Detroit Metropolitan Airport headed to U.S. destinations and more than 37,000 people boarded a Spirit plane flying to international locations that year, the Wayne County Airport Authority reported.
How will Spirit employees be affected?
The repercussions for Spirit employees are likely to be “profound,” Brown said.
“Airline professionals operate within a seniority-based system that governs everything from pay to scheduling and career progression,” she said. “When an airline shuts down, that seniority is effectively lost overnight.
“While pilots and highly skilled technicians are often reabsorbed into the industry over time — particularly during periods of pilot demand — they typically restart at lower seniority levels, which can represent a significant career setback. Non-pilot employees, including customer service agents, ground personnel and administrative staff, often face greater challenges in finding comparable positions quickly.”
Spirit Airlines, which is based in Florida, did not respond to an email from the Detroit Free Press seeking comment. Neither did the Federal Aviation Administration, which regulates the U.S. airline industry.
Can I still get a refund?
The U.S. Department of Transportation offers these suggestions to consumers about what to do when an airline goes bankrupt and ceases operations before they can use their plane tickets:
Spirit said in a news release Saturday that it will automatically issue refunds for any flights purchased through Spirit with a credit or debit card to the original form of payment. Passengers who booked through a travel agent should contact the travel agent directly for the refund. Compensation for passengers who booked through other methods, including a voucher or credit or Free Spirit points will be determined at a later date through the bankruptcy process.
What can I do if I’m stranded?
The U.S. Department of Transportation recommends checking with other airlines that fly to your destination to see whether they might be willing to:
Free Press staff writer Andrea May Sahouri and intern Natalie Davies contributed.
Contact the Kristen Shamus: kshamus@freepress.com. Subscribe to the Detroit Free Press.
This article originally appeared on Detroit Free Press: Impact of Spirit Airlines closure will be swift in Michigan, beyond
Reporting by Kristen Jordan Shamus, Detroit Free Press / Detroit Free Press
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