TAMPA, Fla. — When Spirit Airlines announced it was closing earlier this month, it shocked thousands of travelers. Some were even left stranded.
The announcement came with the immediate closure of operations globally.
WATCH Travel experts share tips to help travelers recoup money from Spirit Airlines
The cause of the shutdown? Ongoing financial issues.
After filing for bankruptcy twice, failed attempts to restructure the business, and no other funding available to bail them out, it was too much for the budget airline to recover from.
In a statement posted by Spirit, the company also cited the steep rise in fuel costs as contributing to their financial hardship.
The recent surge in fuel prices stems from the war with Iran.
“Jet fuel has now claimed the first airline, Spirit Airlines. Maybe not in the best financial position to begin with, but you have to realize airlines are selling tickets for as far out as 11 months, that’s kind of a hedge that Americans have been buying tickets for summer travel well earlier than the summer. Now airlines are going to have to kind of come up with the gap to pay that. Fuel expenses are one of the biggest expenses that airlines have,” said Patrick De Haan, Head of Petroleum Analysis for GasBuddy.
So what are the next steps people can take?
The first thing you should do is try to get a refund from Spirit through their designated website.
Spirit said it would automatically process refunds for any flights booked directly through Spirit, purchased with a debit or credit card.
“But I recommend that you reach out to your credit card company. If you booked with a credit card, file a dispute. Banks allow you to dispute or charge back against the transaction if the merchant didn’t perform the service promised,” said Julian Kheel, CEO and Founder of Points Path.
If you booked through a travel agent or third-party travel website, you’ll have to contact them directly to see what your options are.
“If they have travel insurance, they may also have coverage for financial default, which would give them a third layer of protection if those first two don’t work out,” said Jeff Rolander, Vice President of Claims for Faye Travel Insurance.
You may not get a refund if you purchased a ticket with a voucher or Spirit loyalty points.
“If you were holding Spirit trip credit, miles, or any sort of credit with the airline, you are unfortunately likely going to lose that money. You can file a claim with the bankruptcy court, but you’re going to be at the very end of the priority line,” said Kheel.
In terms of rebooking, many airlines had capped their fare on routes where they competed with Spirit, offering reduced prices for a short time.
As for the future of the airline industry, experts believe the closure of Spirit’s low-cost travel will have a big impact on the business as a whole going forward.
“That’s because Spirit, with its ultra-low-cost business model, had the effect of keeping downward pressure on airfares at other airlines because they had to compete. With Spirit now gone, it’s likely we will see airfares increase over time,” said Kheel.
Share Your Story with Larissa
Larissa Scott stays on top of everything related to education and public health for Tampa Bay 28. If you have a story you want to share, send Larissa a message below.
.
Pasco schools tell parents kindergartners must be potty-trained before class starts
District leaders were receiving reports at the start of the school year that nearly every elementary school had about 10 students who could not independently use the restroom.
