FAQ: Spirit Airlines' bankruptcy and how it might affect your travel
Spirit Airlines filed for Chapter 11 bankruptcy protection in late August for the second time in nine months. Its previous bankruptcy in November 2024 had already made it the first major U.S. airline to do so since 2011.
Understandably, the news may be unsettling to customers booked on Spirit. The carrier says it should operate as normal while it goes through bankruptcy proceedings, but it has already cut routes since its second bankruptcy and at least two rival carriers have added service in Spirit markets in case "Spirit suddenly goes out of business."
Here's what you need to know.
Will Spirit Airlines keep flying?
Yes. The carrier says it will be business as usual as it goes through the bankruptcy process. Spirit plans to operate its flights and pay its staff just as it had before filing for bankruptcy.
There's actually a strong precedent for this in the U.S. airline industry. American Airlines, Delta Air Lines and United Airlines have all filed for bankruptcy during the past two decades, and each operated largely as normal during the process. American, which sought Chapter 11 bankruptcy protection in 2011, is the most recent among major airlines. It emerged from bankruptcy protection in 2013 as part of a merger with US Airways that, at the time, made it the world's largest airline.
However, given that this is Spirit's second bankruptcy in less than a year, there's more concern about its long-term prospects than during its first filing. Spirit seems set to keep flying into December, when more updates are likely to emerge about the carrier's financial state.
Will Spirit cancel flights or routes because of bankruptcy?
Spirit has already ended service to 11 cities as part of its restructuring.
More broadly, Spirit is looking to overhaul its business model to focus on profitability, so it's impossible to rule out other changes as the carrier navigates the Chapter 11 process.
Flights are unlikely to be canceled on short notice. Spirit intends to keep flying its published schedule, but long-term changes could result in changes for flights later this year. Customers should be prepared for a continuation of incremental changes and updates as Spirit seeks to move to a more profitable business model.
Spirit Airlines and the upcoming holiday season
For now, Spirit said it expects to operate its normal schedule — including through the busy upcoming holiday period.
That said, there's no guarantee how Spirit's schedules will hold up. More updates on the airline's finances are expected in December, when we'll likely learn more about Spirit's long-term trajectory. Travelers flying during the holidays — especially in later December and beyond — may want to consider insuring their trips or having backup plans.
What will happen to my Spirit frequent flyer points and credits?
Spirit says it will continue to run its Free Spirit loyalty program as normal, so all earnings and redemptions should be unaffected. The same holds true for any vouchers or credits with the airline.
The carrier has also said the terms of its cobranded credit card will remain unaffected as the proceedings play out.
If Spirit does go out of business, its points and credits would not be honored. That said, competitor airlines looking to win over Spirit customers may decide to honor all or part of outstanding points balances — but there's no guarantee that would happen.
Will Spirit go out of business?
This is where it gets murky. During its first bankruptcy, Spirit's words were: "Absolutely not!"
This second bankruptcy, however, comes with a lot more uncertainty. Spirit already warned investors earlier in August that it could be forced to shut down if its financial performance didn't improve. The (second) bankruptcy filing that followed gives Spirit more cover to restructure with the hopes of emerging as a leaner airline.
The Chapter 11 bankruptcy process is meant to give companies protection from creditors while they attempt to reorganize their finances and business models. That's what Spirit is doing. It's different from a Chapter 7 bankruptcy, which typically sees a company suspend operations and sell off its assets.
Ultimately, however, it's impossible to say exactly what Spirit's future holds. Big U.S. airlines that have filed for Chapter 11 bankruptcy protection this century have kept flying — and have usually emerged as stronger, leaner competitors. This includes American, Delta and United. But airlines that have filed for bankruptcy more than once have not fared as well — and Spirit's long-term prospects are definitely uncertain.
For now, customers should expect Spirit to keep flying — but they should also monitor the news for updates, especially for bookings more than a few months out.
How can I protect my bookings on Spirit?
If you've already booked your Spirit tickets, your options for pursuing additional protections are limited. For new bookings, however, there are a number of things you can do for extra peace of mind.
Consider using a credit card that comes with travel protections. That might include trip interruption coverage that could help you recoup expenses incurred for new travel in the event of a canceled flight. As always, make sure to read the fine print before booking so you know what's covered.
Travel safeguards: Best travel credit cards
You also could purchase trip insurance that covers you in the event of flight cancellations or unexpected travel disruptions. TPG has the latest on how to evaluate credit card and travel insurance coverage.
Related reading:
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Annual Fee
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
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- Annual Fee is $325.
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Rewards Rate
4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.