Spirit Airlines Files for Bankruptcy—How Will It Affect Thanksgiving Travel in California?

Spirit Airlines filed for bankruptcy protection Monday, but what does that mean for travelers departing from or headed to California for the holiday season?

The budget airline flies to several airports in California, including the Los Angeles International Airport, Oakland International Airport, San Diego International Airport, John Wayne Airport, Hollywood Burbank Airport, Sacramento International Airport and the San José Mineta International Airport.

Spirit Airlines said in a news release that it expects to continue operating its business as normal throughout the Chapter 11 process and that travelers can “book and fly without interruption” and use all tickets, credits and loyalty points as usual.

Robert W. Mann Jr., a former airline executive officer and current president of R. W. Mann and Co., an independent airline consultancy, told USA TODAY that while it’s unlikely that Thanksgiving travel will be affected as Spirit enters bankruptcy, it is possible there could be schedule changes and cancellations later in the winter.

Travelers who’ve already booked with Spirit should watch for any notifications from the airline about changes to their itinerary as their departure date approaches.

Why did Spirit Airlines file for Chapter 11 bankruptcy?

The Chapter 11 bankruptcy protection filing comes after the airline ended its $3.8 billion planned merger with JetBlue Airways in March after a federal judge blocked it.

That’s coupled with more than $2.5 billion in losses since the start of 2020 and “looming debt payments” that are more than $1 billion in 2025 and 2026, the Associated Press reported. Spirit Airlines said it expects to emerge from the Chapter 11 process in the first quarter of 2025.

What Led to Spirit Airlines’ Bankruptcy?

Spirit Airlines, known for offering low-cost flights to domestic and international destinations, filed for Chapter 11 bankruptcy protection, a legal process that allows companies to restructure their debts while continuing operations. The airline cited several factors contributing to its financial struggles, including:

• Rising Fuel Costs: Like many airlines, Spirit has been hit hard by increasing fuel prices. As fuel accounts for a substantial portion of operating costs, higher prices can dramatically impact profitability, especially for low-cost carriers that operate on thin margins.
• Operational Challenges: Spirit has faced ongoing operational issues, including flight delays, cancellations, and customer service challenges. These issues have been exacerbated by the effects of the COVID-19 pandemic, which disrupted the entire airline industry.
• Increased Competition: The rise of other low-cost carriers, coupled with legacy airlines offering competitive pricing, has created a highly competitive market. Spirit’s struggles to maintain a profitable edge have made bankruptcy an unfortunate, but necessary, step.

While the airline plans to continue flying while it works through bankruptcy proceedings, it has left many passengers wondering about their travel plans, especially during the busy holiday season.

Impact on Thanksgiving Travel in California

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For Californians who rely on Spirit Airlines for affordable flights, especially during peak travel times like Thanksgiving, this bankruptcy filing could have several effects:

1. Flight Cancellations and Delays

Spirit Airlines has been notorious for its flight delays and cancellations in the past, and with the company undergoing restructuring, there’s a possibility that operations may be further disrupted.

The airline may need to consolidate routes, cut back on certain flights, or even suspend some services entirely. For travelers heading to or from California airports such as Los Angeles International Airport (LAX), San Francisco International Airport (SFO), or San Diego International Airport (SAN), there is a risk that their flights could be canceled or rescheduled.

What you can do:

• Stay informed: Keep checking the status of your flight on Spirit’s website or through the app. It’s also a good idea to sign up for flight alerts and notifications.
• Contact Spirit: If your flight is affected, reach out to Spirit Airlines directly to inquire about alternative arrangements, such as rebooking or refunds.

2. Reduced Availability of Flights

One of the challenges of Spirit’s bankruptcy filing could be a reduction in flight availability. To streamline operations and reduce costs, Spirit may scale back on certain routes or reduce its frequency, especially if they are less profitable. With Thanksgiving being one of the busiest travel periods of the year, this could mean fewer options for Californians trying to get home or travel to holiday destinations.

What you can do:

• Book early: If you haven’t already booked your Thanksgiving travel, now is the time to do so. With the potential for reduced flight availability, securing a seat sooner rather than later will give you more peace of mind.
• Consider alternatives: If Spirit Airlines no longer offers the flight options you need, look into other low-cost carriers such as Alaska Airlines, Southwest, or JetBlue, which also serve major California airports.

3. Ticket Refunds and Compensation

For passengers with existing Spirit bookings, one of the biggest questions is how the airline will handle ticket refunds and compensation. While Chapter 11 bankruptcy protection allows Spirit to continue operating, it also gives them some leeway to modify or cancel existing contracts. This could affect passengers who are hoping for a straightforward refund or who need compensation for a canceled or delayed flight.

What you can do:

• Review your booking: If you’re a Spirit passenger, it’s important to review the terms and conditions of your booking. Look for any updates or changes to your flight that might come as a result of the bankruptcy proceedings.
• Know your rights: In general, if your flight is canceled or significantly delayed, airlines are required to provide compensation, depending on the circumstances. If you experience significant disruptions, it’s worth reaching out to Spirit’s customer service or checking with your credit card provider (in case of chargebacks) to explore your options.

4. Increased Crowding and Flight Costs on Other Airlines

With Spirit Airlines cutting back on flights, other airlines may see increased demand, particularly in the budget-friendly and economy segments. This could result in higher prices for tickets on alternative airlines. Major hubs like Los Angeles, San Francisco, and San Diego could see flight costs rise as demand spikes for the days leading up to Thanksgiving.

What you can do:

• Compare prices: If Spirit is no longer an option, check other carriers for available flights. Sites like Google Flights, Skyscanner, or Kayak can help you compare prices across multiple airlines.
• Look for deals: Some airlines may offer last-minute discounts or holiday promotions to fill seats as Spirit cuts back, so it’s worth monitoring prices regularly.

5. Potential Long-Term Impact on Low-Cost Travel

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While the immediate effect of Spirit’s bankruptcy may only be felt by Thanksgiving travelers, there could be long-term consequences for low-cost travel in California. Spirit has long been one of the go-to carriers for budget-conscious passengers looking for affordable flights. If the airline reduces its operations, other low-cost carriers might step in to fill the gap—or they might increase their prices in response to less competition.

What you can do:

• Adapt to changing trends: Stay informed about the shifting landscape of low-cost carriers. The bankruptcy may lead to changes in the types of services and flights available, so it’s important to keep an eye on the market.

What Travelers Should Do Now

With Thanksgiving just around the corner, travelers who booked flights with Spirit Airlines should take immediate steps to ensure their plans stay on track:

• Confirm flight status: Check with Spirit Airlines for updates on your booking, including possible cancellations or delays.
• Prepare for the unexpected: Have a backup travel plan in case your flight is impacted. This could include considering alternative routes or exploring other transportation options like train or bus services if your flight is canceled last minute.
• Be proactive: Contact Spirit if you have any questions about refunds, cancellations, or rebooking options.

Conclusion

Spirit Airlines filing for bankruptcy has the potential to disrupt travel plans for many passengers, especially those flying in and out of California during the busy Thanksgiving period.

While the airline will continue to operate during the bankruptcy proceedings, passengers should be prepared for potential delays, cancellations, and fewer flight options.

Staying informed, being proactive, and exploring alternative options will help ensure that your Thanksgiving travels go as smoothly as possible—despite the uncertainty surrounding Spirit’s financial restructuring.