Spirit Airlines on Friday asked the Trump Administration for hundreds of millions of dollars in emergency funding as spiking jet fuel costs from the U.S.-Israel/Iran conflict threaten to force the struggling carrier into liquidation, according to The Air Current.
The aviation news service, citing sources familiar with the matter, said on April 17 that executives from Spirit and other low-cost carriers are expected to meet with Transportation Secretary Sean Duffy early this week at his request.
Previous news reports from CNBC and Bloomberg warned that the Daria Beach-based, ultra-low-cost airline could liquidate at any time, depending on what its creditors do next. Jet fuel makes up more than 40% of an airline’s operating expense, according to market analyst Argus. Five major U.S. airlines — JetBlue, United Airlines, Delta Air Lines, Southwest Airlines, and American Airlines — have all raised checked bag fees in response.
For Spirit, it seemed as if an end to its financial woes was in sight with nothing but blue skies ahead. The carrier fought desperately since 2024 to recover from two bankruptcies within a year and a failed merger with JetBlue Airlines, overhauling its network, committing to pay reductions, and reaching agreements with its creditors to shrink its debt and lease obligations by billions of dollars.
What do you do if you’ve booked your flight on Spirit already? You have options, but you’ll need to act quickly.
If Spirit Airlines liquidates, what do I do if I’ve booked tickets?
Your first move may be to cancel your flight as soon as possible and rebook on another airline, while Spirit is solvent enough to refund your payment. If this is inconvenient for any reason (such as your flight happening in the next couple of days), watch the news to see what happens next.
As of Monday morning, Spirit is operating as usual. If the U.S. government does bail out Spirit, any immediate flights should continue as expected. However, experts say that without a bailout, Spirit could be forced to ground.
When a company liquidates, the consumers and employees are typically among the last ones to get any money back, The Points Guy said. Creditors and other parties get first crack at it.
However, if you haven’t canceled your Spirit flight before it liquidates (if it does), you should still be able to get some form of refund for flights you’ve scheduled as long as you paid by credit card.
Credit cards offer some relief for Spirit refunds
“Most major credit cards offer a range of consumer protections and allow holders to dispute charges for goods and services that the vendor fails to deliver,” The Points Guy said. “In this case, that would include airfare if the airline is no longer able to provide the transport you’ve paid for.”
Call the number on the back of your credit card and tell the representative you want to dispute a charge, then follow the instructions. Keep in mind that a refund is not guaranteed.
Will debit cards refund Spirit Airline tickets?
If you used a debit card, you can file a dispute for undelivered services, the U.S. Department of Transportation said, although it’s not as likely. Call the number on the back and ask.
Will travel insurance cover canceled Spirit flights?
Not necessarily. It depends on your specific policy and whether it covers “financial insolvency” on the part of the carrier, and whether you bought your tickets before financial problems were announced.
Stand-alone policies may be more likely to cover it than travel insurance through credit cards, The Points Guy said, but it still isn’t certain. Check your policies to see what’s included.
C. A. Bridges is a journalist for the USA TODAY Network-Florida’s service journalism Connect team. You can get all of Florida’s best content directly in your inbox each weekday day by signing up for the free newsletter, Florida TODAY.
This article originally appeared on Palm Beach Post: Spirit Airlines asks for bailout, what to do if you have trips booked
Reporting by C. A. Bridges, USA TODAY NETWORK – Florida / Palm Beach Post
USA TODAY Network via Reuters Connect
