Spirit Airlines Filed for Bankruptcy. Here's What It Means for You

Budget airline Spirit doesn’t exactly have the best reputation, so it’s probably not a surprise that the company just filed for bankruptcy protection. But considering it happened just as the busiest travel season of the year is starting, people are nervous about the news. 

Do you have a Spirit flight booked for Thanksgiving or Christmas? Here’s what you need to know about the Spirit Airlines bankruptcy.

Spirit hasn’t had a profit since 2019, and has tried to stay afloat by selling planes and slashing routes. It was planning to be acquired by JetBlue, but that deal was blocked on antitrust grounds earlier this year. In a court filing, the company listed its assets and liabilities as between $1 billion and $10 billion.  

There have been no layoffs so far, but furloughs have been ongoing, and more are planned. In September, 186 pilots were furloughed, and 330 are being furloughed in January 2025. To save even more money, 120 captains will be downgraded to first officers on Jan. 31.  

In a statement to Newsweek, a Spirit spokesperson said, “The Chapter 11 process itself will not impact Team Member wages or benefits, which are continuing to be paid and honored for those employed by Spirit.” 

In an open letter to Spirit customers posted on its website, the company assures people that all tickets already booked will be valid and flights will operate as scheduled. That includes using loyalty points and credits, as well. The company expects to continue operating normal business through the entire restructuring process, which is expected to end in the first quarter of 2025.  

Yes, you can still book flights with Spirit. “The most important thing to know is that you can continue to book and fly now and in the future,” the company says in the open letter. But considering booking a flight with Spirit was already a bit of a gamble before the bankruptcy, you might want to consider other options if they’re available.  

For more smart travel news coverage, please sign up for our free newsletters.