Spirit Airlines could be making a nosedive.
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The budget airline, currently in its second Chapter 11 bankruptcy, could liquidate in the next couple of days, according to ABC News. This means it could suddenly shut down, leaving travelers stranded.
Why Could Spirit Airlines Shut Down?
Spirit Airlines filed for bankruptcy protection for the first time in November 2024. The airline briefly exited protection. It filed for Chapter 11 bankruptcy again in August 2025, marking its second filing within a year.
The company announced a restructuring agreement and reorganization plan last month to reduce its debt. It had hoped to exit bankruptcy in early summer.
However, this plan was created with the hope that fuel prices would remain stable. With jet fuel costs rising due to the conflict in the Middle East, the company is running out of money fast, prompting lenders to consider liquidating Spirit Airlines rather than completing the restructuring.
"If it does happen, it just means one morning we're gonna see that Spirit is literally out of its last dollar and can't fund its operations and put an 'out of business' sign on the proverbial door," said Ben Mutzabaugh, senior managing editor for aviation at The Points Guy.
I Have Tickets. What Should I Do if Spirit Airlines Liquidates?
If you have booked a flight with Spirit Airlines, experts recommend not canceling, as you forfeit your right to a refund if the company has money left over to issue one.
Unfortunately, there aren't many protections in place for customers who have booked with Spirit. However, if you booked with a credit card, you have a better chance of getting your money back.
"Typically, there is a provision on most credit cards that they will honor that says if you have paid for services that weren't rendered, then the company will charge back the money to you and at least make you whole for that part of it," said Mutzabaugh.
If you have travel insurance for your ticket, Mutzabaugh says getting a refund "really depends on the fine print of your policy."
