Spirit Airlines Files for Bankruptcy: What Does It Mean for Travelers?

Spirit Airlines, the largest budget carrier in the U.S., filed for Chapter 11 bankruptcy protection on Monday, November 19, 2024. The airline, known for its no-frills, low-cost flights, has struggled to bounce back from the COVID-19 pandemic and rising operating expenses. This move raises concerns among travelers about their existing bookings and loyalty points. Here's what you need to know about the implications for travelers.

**Flights and Bookings**

Spirit Airlines has assured customers that flights will continue as scheduled during the bankruptcy process. The airline expects to honor all existing tickets, credits, and loyalty points. Travelers with Spirit reservations should not face any disruptions to their travel plans in the near term. However, it is essential to monitor any updates or notifications from the airline regarding potential changes to itineraries.



**Loyalty Points and Miles**

Frequent flyer miles and loyalty points are valuable assets that often survive bankruptcies. According to Sarah Foss, global head of legal at Debtwire, these programs are attractive to potential buyers, as they represent a customer base. Spirit Airlines has confirmed that all existing loyalty points and miles remain valid, and customers can continue to use them as usual. However, travelers should keep an eye on any updates or changes to the loyalty program during the bankruptcy process.

**Potential Merger or Acquisition**

Spirit Airlines' bankruptcy may lead to a merger or acquisition with another airline. If this happens, the frequent flyer program could be part of the package and combined with that of the other carrier. This could result in travelers having more redemption options and potentially higher value for their miles. However, it's important to monitor the situation and be prepared for any changes that may arise during the bankruptcy process.

**Steps Spirit Can Take to Reassure Customers**

To maintain customer loyalty and confidence during the bankruptcy proceedings, Spirit Airlines should:

1. Maintain open communication with customers, providing regular updates on the bankruptcy process and its impact on travel plans.
2. Honor existing miles, credits, and loyalty points, as well as those earned during the bankruptcy period.
3. Offer incentives, such as special promotions, discounts, or bonus miles, to encourage customers to continue flying with Spirit.
4. Commit to honoring future miles and perks earned during the bankruptcy period.

By taking these steps, Spirit Airlines can reassure customers and maintain their loyalty during the bankruptcy proceedings, ultimately contributing to a successful reorganization.

In conclusion, Spirit Airlines' bankruptcy filing has raised concerns among travelers about their existing bookings and loyalty points. However, the airline has reassured customers that flights will continue as scheduled, and all existing tickets, credits, and loyalty points remain valid. Travelers should monitor any updates or notifications from the airline and be prepared for potential changes during the bankruptcy process. By maintaining open communication and honoring customer commitments, Spirit Airlines can help to alleviate traveler concerns and maintain their loyalty throughout the bankruptcy proceedings.