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.

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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:

• Best airline credit cards
• What exactly are airline miles, anyway?
• 6 real-life strategies you can use when your flight is canceled or delayed
• The best credit cards to reach elite status
• What are points and miles worth? TPG's monthly valuations