If you want to fly from Fort Lauderdale to New York next weekend, you could pay as little as $146 on Spirit Airlines — at least $100 less than tickets on another airline, according to Google Flights. But that deal comes with a big potential downside.
Spirit Airlines is in dire financial straits. Analysts are warning it could be just days away from going out of service, even as Washington reportedly considers a bailout package that could keep the airline running.
“This is real unknown territory because we’ve never seen something like this happen outside of COVID, outside of 9/11, to one singular airline in the U.S.,” Katy Nastro, a travel expert at airfare deals website Going, told USA TODAY. “This is a very odd scenario that Spirit now finds themselves in.”
For travelers, purchasing a Spirit ticket right now could be a high-risk, high-reward situation. You may wind up with an incredibly cheap getaway — or you may wind up stranded and needing to pay through the nose if the airline dissolves while you’re on your trip.
“If you feel comfortable with that risk, go for it, but I personally wouldn’t be booking a Spirit ticket right now until we know more. If you could push your trip out a week, better odds,” Nastro said.
If you are going to fly Spirit in the near future, here’s what to know.
What Happens If You Book Your Ticket and the Airline Collapses?
You could be in for a rough time.
Airlines sometimes offer discounted “rescue fares” for passengers stranded when one of their competitors goes out of business, but those aren’t always cheap or easy to come by.
“I hesitate to say those are going to be cheap flights,” Nastro said. “Cheaper than a last-minute flight, sure, but cheaper than a $49 Spirit flight? No. You’re likely going to be paying more than you did for your entire round-trip Spirit flight.”
William J. McGee, senior fellow for aviation and travel at the American Economic Liberties Project, added that flights on other airlines are likely to already be full with their own passengers, especially as we head into summer, so those carriers may not have seats to spare anyway.
“The load factors are so high, how can carriers pick up the slack here?” McGee said.
Book With a Credit Card
If you’re going to take the risk, Nastro said you should definitely pay for your ticket with a credit card, because that’s the best way to protect your purchase if the airline folds.
Other creditors will be ahead of travelers in line for repayment before the airline’s limited remaining funds can be applied toward refunds for canceled flights.
“Dispute the charge because the service is not rendered at that point because the merchant doesn’t exist,” Nastro said.
Still, McGee warned, credit card issuers may not be required to provide refunds in the event of merchant bankruptcy, so even that process can be a gamble.
The Department of Transportation outlines the process for filing a claim with your credit card company.
Travel insurance also may not cover bankruptcy as a reason for a claim, so make sure you know what’s in your policy before relying on your insurance.
It could also be a good time to use your Free Spirit points, which may disappear if the airline goes out of business or be devalued if it has to restructure again.
Know Your Alternatives
Nastro said if you’re booked to fly on Spirit, it’s also a good idea to keep an eye out for alternative flights to get home if the airline collapses while you’re away. You may also want to consider booking a refundable ticket or one with miles on another airline as a backup — just make sure you remember to cancel the backup plan if you board your Spirit flights.
Zach Wichter is a travel reporter and writes the Cruising Altitude column for USA TODAY.
