If you’re planning to fly with Spirit Airlines this holiday season, there’s no need to panic. Despite filing for bankruptcy on Monday, the airline has assured travelers that operations will continue as normal, at least for now. Spirit, grappling with $3.1 billion in long-term debt, is taking steps to restructure and emerge stronger next year.
In a statement, Spirit emphasized that customers can still book flights, travel as planned, and use tickets, credits, and loyalty points without interruption. “Guests can continue to book and fly without interruption,” the airline said, aiming to reassure its loyal customer base during a tumultuous time.
Immediate Impact: Minimal for Now
Travel experts echo this sentiment, noting that holiday travelers are unlikely to experience disruptions. Zach Griff, senior reporter at The Points Guy, sees no immediate cause for concern. “Thanksgiving and Christmas flyers should feel confident about their plans,” Griff said. However, he advised caution when booking flights far in advance, given the uncertainty surrounding Spirit’s restructuring.
The airline has already started trimming its operations, cutting 32 routes in September and 24 more in November. While these adjustments signal a broader effort to streamline operations, Spirit is optimistic about emerging from bankruptcy early next year with reduced debt and improved financial flexibility.
A Familiar Chapter in U.S. Aviation
Spirit’s bankruptcy isn’t unprecedented in the aviation industry. Major airlines like United (2002), Delta (2005), and American (2011) have navigated similar challenges and come out the other side. Spirit, known for its ultra-low-cost model, is confident it can do the same. Ted Christie, Spirit’s CEO, expressed optimism about the airline’s future. “This restructuring will materially strengthen our balance sheet and allow us to continue enhancing the travel experience for our guests,” Christie stated.
However, this isn’t Spirit’s first brush with turbulence. The airline attempted two mergers in 2022—one with Frontier Airlines and another with JetBlue Airways. Both deals fell through, with the latter being blocked by a federal judge earlier this year on antitrust grounds.
The Value of Spirit’s Low-Cost Model
Spirit has long been a pioneer of the low-cost airline model, offering base fares that are significantly cheaper than those of legacy carriers. Its average roundtrip fare of $140 (excluding taxes and fees) remains competitive, even slightly higher than peers like Frontier ($136) and Allegiant ($134). However, Spirit’s business model requires passengers to pay extra for carry-ons, checked bags, and seat assignments.
This aggressive pricing strategy has shaped the industry, pushing traditional airlines to introduce “basic economy” fares to compete. Griff argues that Spirit’s survival benefits travelers by keeping ticket prices in check. “Without Spirit, major airlines would have more freedom to raise fares due to reduced competition,” he explained.
Looking Ahead
While Spirit’s bankruptcy filing might give some travelers pause, experts suggest it’s a standard procedure for restructuring. Sarah Foss, global head of legal at Debtwire, believes Spirit’s case follows a typical bankruptcy trajectory. She acknowledges that some customers might feel uneasy, but she doesn’t foresee immediate disruptions. “It’s understandable if travelers choose to book elsewhere, but Spirit’s current operations appear stable,” Foss noted.
For now, Spirit flyers can continue their holiday plans without undue worry. However, for those booking further into the future or deciding where to use their loyalty points, it might be wise to monitor Spirit’s progress as it works to navigate this critical period.
