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Spirit Airlines may soon go out of business due to high gas prices.
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If operations cease, most tickets will become invalid and no refunds are promised.
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If Spirit manages to find a buyer, the customer gets to keep the ticket.
If Spirit Airlines goes out of business, the tickets you purchased with that airline will become worthless.
That’s the risk the ultra-low-cost carrier faces as it searches for a buyer but has yet to close a deal. The airline has struggled for years to turn a profit due to changing passenger habits and rising costs. According to reports, the oil crisis caused by the Iran war may be the nail in the coffin.
Basically, right now, it’s a gamble.
A merger or acquisition could mean tickets can be redeemed or rebooked to new airlines, such as deals like American Airlines and US Airways, United Airlines and Continental Airlines, Alaska Airlines and Hawaiian Airlines. This usually occurs while the acquired operator is still operating.
Spirit is reportedly facing a total meltdown, which usually means pre-orders are immediately voided. Spirit’s operations could come to a complete halt, leaving few resources for customers as call centers close and airport staff disappear.
Spirit previously told Business Insider that it does not “comment on market rumors and speculation.”
If people must travel, they still need to pay to book another airline or find another mode of transportation. Last-minute flights and trains are often expensive, and re-planning your trip can be a hassle.
The airline may find relief from a drop in oil prices on Friday after the United States and Iran signaled the opening of the crucial Strait of Hormuz; Brent crude fell to $88 at noon on Friday from nearly $100 the day before.
Spirit filed for Chapter 11 bankruptcy and the company may deny refunds. Passengers can recoup the cost of their tickets through a credit card refund (which I plan to do if my June Spirit flight is suddenly canceled).
This has been the reality for many years.
Florida-based Silver Air recently shut down in June 2025, leaving passengers in the state and the Caribbean without flights. Icelandic low-cost airline WOW Air also caused chaos at the airport when it suddenly ceased operations in 2019.
Nearly 30 years ago in 1998, Pan Am’s infamous collapse resulted in the complete grounding of all its aircraft. Every ticket was cancelled, and bankruptcy protection meant Pan Am didn’t have to issue refunds.
After two failed attempts to merge with Frontier Airlines and JetBlue Airways, Spirit Airlines was finally on the verge of collapse. Frontier was the first bidder in 2022, followed by a more convincing offer from JetBlue.
