Spirit Airlines, the airline of choice for many budget travelers, applied bankruptcy protection On Monday, questions were being raised over the viability of no-frills airlines in the post-pandemic era, as consumer preferences shift towards more premium offerings.
Customers planning to fly on the airline for Thanksgiving and beyond are also concerned about what the filing means for their upcoming trips, as well as airfares in general.
the soul has entered into a restructuring agreement With its bondholders to reduce the airline's debt and provide it with increased financial flexibility, Spirit Said In an open letter to customers on Monday. The long-term objective, Spirit said, is to provide its guests with an “enhanced travel experience and greater value.”
The airline, known for its cheap fares, said it expected to emerge from bankruptcy in the first quarter of 2025, “even better positioned to deliver the best value in the sky.”
Industry experts blame changing consumer preferences for Spirit's financial problems Ask for more features While flying.
“We can clearly see that consumer preferences have shifted in favor of more premium products, and low-cost airlines are struggling,” Jungho Suh, a management professor at the George Washington University School of Business, told CBS MoneyWatch. “They don't want to see any additional costs, they want a complete, full-service offering.”
What if I am booked on a Spirit flight?
Spirit clearly states that customers with existing reservations can still use their tickets. Their flight credits and loyalty points are still valid, and can be redeemed as usual. Customers can also make new reservations for future travel.
“The most important thing to know is that you can continue to book and fly now and in the future,” the airline said.
Additionally, Spirit customers can still benefit from the airline's free Spirit loyalty program, as well as earn and redeem Saver$ Club perks and credit card terms.
schedule amendment
Industry experts advise customers to keep a close eye on their upcoming bookings, he said. This includes updating their contact information so that the airline can reach out to them with modifications to their flights.
“Make sure your contact information is up to date and keep a close eye on your reservations,” Brian Kelly, founder of The Points Guy, a site focused on airline deals and travel rewards, told CBS MoneyWatch.
There's no need to panic, Kelly said, but expect airlines to cut back on their schedules, which could result in your flight being rescheduled, or canceled.
“They're not going to stop flying tomorrow, but essentially they will emerge from this process as an even smaller airline, which means there will be some disruption on routes,” he said.
Aviation industry consultant Robert Mann said some customers who were accustomed to flying Spirit from major airports may have to fly from smaller hubs as Spirit moves away from major hubs served by legacy carriers.
He said, “You could see what happened where Spirit decided to compete, and now decided that wasn't such a good idea.”
What will happen to the airfare?
Spirit and other low-cost carriers have helped drive down airfares, even for consumers who do not fly on budget airlines.
“Whether you like them or not, ultra-low-cost carriers are good for our overall aviation ecosystem and good for consumers, even if you never buy them,” Kelly said.
Spirit will become a smaller airline, meaning there will be fewer low-cost flights on most routes, and airfares could increase.
“The smaller Spirit is and the fewer routes they serve, the less pressure there will be on other airlines in those markets, resulting in higher fares overall,” Kelly said. “It's not good for consumers. There's no positive side to it.”