What Happens to Your Ticket if Spirit Airlines Shuts Down?

When booking a plane ticket, most travelers are not worried about the airline going bankrupt. However, recent news reports have revealed that Spirit Airlines is facing financial difficulties and may be forced to shut down. With summer travel season approaching, many passengers may be wondering what will happen to their tickets if the airline goes under. Here’s everything you need to know about the situation and how you can protect your travel plans this summer.

The Current Situation at Spirit Airlines

Reports from the Wall Street Journal and the New York Times have revealed that Spirit Airlines is preparing to cease its operations after failing to reach a deal with the Trump administration. The airline has been facing financial hardship for several years and has entered bankruptcy twice. In April, it was close to liquidation before being offered a potential rescue deal by the government. However, it seems that this deal has also fallen through, leaving the future of the airline uncertain.

How to Protect Your Travel Plans

While it is unlikely that Spirit Airlines will suddenly go out of business, this situation serves as a reminder of the importance of protecting yourself when making travel plans. In 2019, another budget airline, Wow Air, suddenly ceased operations and left passengers stranded.

1.

If you book your flight using a credit card with travel insurance, you will automatically have some protection in case of delays or cancellations. Most travel credit cards offer solid insurance benefits, with premium cards providing the best coverage. Some common examples of coverage include travel cancellation and interruption insurance, which reimburses you if your trip is canceled due to certain covered situations, and travel delay insurance, which covers unreimbursed expenses for delays lasting a certain number of hours.

However, it’s important to note that you will only be eligible for reimbursement if you pay for your trip using the credit card with insurance. Additionally, coverage may only apply to nonrefundable tickets or bookings, and you may need to notify the airline directly for reimbursement. It’s crucial to read your card’s benefits guide to understand what is covered and what is not, especially for cancellations caused by the airline’s financial insolvency.

2.

If you don’t have travel insurance benefits through your credit card, you may want to consider purchasing third-party travel insurance. The cost is usually a percentage of your trip price, and coverage may vary depending on the policy. It’s essential to read the fine print and understand what is covered, especially in situations like the financial insolvency of your airline.

3.

If the airline cancels your flight due to financial insolvency and you don’t have travel insurance, you may be able to dispute the charge with your credit card company. The U. S. Department of Transportation suggests doing this if you have used a credit card to purchase your ticket.