Spirit Airlines goes bankrupt. Will it affect your travel plans?

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Spirit Airlineswhich launched the service out of Rochester two years ago, filed for Chapter 11 bankruptcy protection Monday after a long stretch of quarterly losses, failed merger attempts and looming debt defaults.

It has previously announced pilot furloughs and capacity cuts to address ongoing financial problems as well as engine problems that have grounded many Airbus A320s across airlines. Spirit flies exclusively A320 family aircraft, so it has been heavily impacted by these failures and was already capacity constrained as a result.

The Florida-based discount carrier’s problems worsened after the collapse of its planned $3.8 billion merger with JetBlue Airways in January.

Spirit began operating from Frederick Douglass Greater Rochester International Airport in 2022 with daily nonstop service to Orlando and seasonal nonstop service to Myrtle Beach. It has since added daily nonstop service to Fort Lauderdale.

The airline listed its estimated assets and liabilities in the range of $1 billion to $10 billion each, according to Monday’s lawsuit.

Spirit has entered into an agreement with its bondholders that is expected to reduce total debt and provide increased financial flexibility.

Here’s what passengers need to know when Spirit goes bankrupt.

What happens to already booked flights?

Most, if not all, flights should operate as planned in the short term.

Robert W. Mann Jr., a former airline executive and current president of RW Mann and Co., an independent airline consulting firm, told USA TODAY that Thanksgiving travel is unlikely to be affected, but it is possible that there could be schedule changes and cancellations later in the winter.

Travelers with existing Spirit reservations should watch for notifications of any changes to their itinerary from Spirit as their departure date approaches.

The Ministry of Transport recently finalized guidelines requiring airlines to provide passengers with a full refund if their flight is canceled or delayed more than three hours on a domestic journey or six hours on an international itinerary for any reason. Travelers are only entitled to a refund if they choose not to travel on the delayed flight or on an alternative itinerary offered by the airline.

Can I transfer my Spirit loyalty miles/points to another airline?

In general, airline loyalty points or miles are not transferable.

Who holds Spirit’s flight?

It depends. Spirit already does not own all of its planes. For the portion of its fleet that is leased, the lessor will retain ownership and will be free to re-lease to Spirit or another airline, depending on what offers are on the table.

Aircraft owned by Spirit could be sold to raise cash during the bankruptcy, but the airline may choose to sell other assets such as gates and airport slots instead if its executives feel the planes are more likely to generate revenue by remaining in operation .

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Reporter Marcia Greenwood covers general assignments and has an interest in retail news. Send story tips to [email protected]. Follow her on Twitter @MarciaGreenwood.