Airline Could Go Under Any Day. What Happens To Your Ticket Now?

Spirit Airlines could shut down and begin liquidation as soon as this week, raising questions for travelers.

The airline has already filed for bankruptcy twice, and its latest effort to emerge from the process is not going well, CNBC reported.

“We don’t comment on market rumors and speculation,” the budget airline told CNBC.

Some travelers may be able to get refunds if their flights are canceled, depending on factors such as whether they booked with a credit card, have travel insurance, and others, according to The Points Guy.

InsureMyTrip CEO Suzanne Morrow said that travelers’ options depend on “when that policy was purchased.”

“For those who already hold a policy, the answer is in the fine print. Timing plays a major role here. At this stage, many insurers view Spirit’s financial situation as a known or ‘foreseeable’ event, which can limit access to key benefits like Trip Cancellation or Trip Interruption,” she added.

“If someone is thinking about buying coverage now, they should be aware that if Spirit ceases operations after the policy is purchased, standard cancellation or interruption benefits generally won’t apply,” Morrow continued.

A federal judge shot down a proposed merger between Spirit and JetBlue in 2024, a move supported by the Biden-era Justice Department. There were also reports late last year of a possible merger between Frontier Airlines and Spirit, Travel Weekly reported.

“Today’s decision by JetBlue is yet another victory for the Justice Department’s work on behalf of American consumers,” then-Attorney General Merrick Garland said after JetBlue scrapped the merger.

“The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices. We will continue to vigorously enforce the nation’s antitrust laws,” Garland added.

The potential collapse of Spirit Airlines comes at a tumultuous time for air travel in the United States, as costs have risen due to higher fuel prices and other pressures on the industry.

The Daily Wire reached out to the Department of Transportation for comment.