Market Data 
If Spirit Airlines goes out of business, your tickets with the carrier would become worthless.
That’s the risk hanging over the ultra-low-cost carrier as it searches for a buyer but has yet to secure a deal. The airline has struggled for years to turn a profit amid changing traveler habits and raising costs; reports say the oil crisis triggered by the Iran war could be the nail in the coffin.
Basically, at the moment, it’s a gamble.
A merger or acquisition can mean that tickets are honored or rebooked onto the new airline, as seen in deals such as American Airlines and US Airways, United and Continental, and Alaska Airlines and Hawaiian. This typically happens while the acquired carrier is still operating.
A full collapse is what Spirit is reportedly facing, and that usually means bookings are voided immediately. Spirit’s operations would likely come to a complete halt, and there would be few resources for customers as call centers close and airport staff disappear.
Spirit previously told Business Insider that it doesn’t “comment on market rumors and speculation.”
If people must travel, they would still have to pay to book with another airline or find another method of transportation. Last-minute flights and trains are often costly, and it can be a headache to re-plan a trip.
The airline may get a reprieve from the fall in oil prices on Friday after the US and Iran said the crucial Strait of Hormuz was open; Brent crude oil fell to $88 midday Friday from nearly $100 the day before.
Spirit’s Chapter 11 bankruptcy status also means it may refuse refunds. Customers may be able to recoup the ticket cost through a credit card chargeback (which I plan to do if my June Spirit flight is abruptly canceled).
This has been the reality for years.
Florida-based Silver Air recently shut down in June 2025, leaving passengers across the state and the Caribbean without flights. Icelandic low-cost carrier WOW Air similarly left a trail of chaos at airports when it suddenly halted operations in 2019.
And nearly 30 years ago, in 1998, Pan Am’s infamous collapse led to a total grounding of all its aircraft. Every ticket was canceled, and bankruptcy protection meant Pan Am didn’t have to issue refunds.
Spirit ended up on the brink of collapse after two failed attempts to merge with Frontier Airlines and JetBlue Airways. Frontier was the first bidder in 2022, before JetBlue swooped in with a more convincing offer.
That merger was ultimately blocked by regulators in 2024, leaving Spirit to fend for itself.
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