Spirit Airlines on Brink of Collapse: Here’s What to Do

Spirit Airlines is preparing to cease operations, according to media reports, leaving travelers with upcoming flights to make alternate arrangements [1]. Those who booked with a credit card may be eligible for refunds through chargeback disputes [1]. The budget carrier's potential liquidation follows years of financial struggle, including two Chapter 11 bankruptcy filings in the last two years [1]. Travelers are advised not to proactively cancel nonrefundable tickets, as this may only yield a voucher of little use if the airline stops flying [1]. Instead, the priority should be securing backup travel, such as by booking refundable award flights with other carriers [1]. For refunds, credit card payments offer the clearest path. Card networks like American Express, Visa, and Mastercard allow chargebacks when a merchant fails to deliver services, with dispute windows that can extend beyond the typical 120 days for future services like flights [1]. Cardholders should gather documentation of their reservations and file promptly [1]. Protections from credit card travel insurance or separate policies are unlikely to apply, as most exclude coverage for an airline's financial insolvency [1]. Passengers holding Free Spirit loyalty points face the potential loss of those miles, as there are no established mechanisms for redemption outside of award flights on Spirit [1]. The airline's difficulties have been compounded by external factors like increased fuel costs [1].