Refer China: You May Want to Think Twice Before Booking with This US Airline

NEWS

You May Want to Think Twice Before Booking with This U.S. Airline

In March 2025, Spirit Airlines, America's ultra-low-cost carrier, emerged from a Chapter 11 bankruptcy filed in late 2024, claiming it was ready to soar again. But just five months later, the airline is once again teetering on the edge—possibly heading back into bankruptcy, and this time, the outlook is far bleaker.

Check our latest video on China Visa and foreign-related knowledge!

Follow our channel for updates 👇

According to multiple U.S. media outlets, Spirit's post-restructuring recovery hasn't taken flight. Travelers in a post-pandemic world increasingly demand more comfort and better service, even if it costs more. The days when cramped seats and stripped-down fares were acceptable seem to be fading. Worse, the overall demand for air travel remains lukewarm—bad news for carriers like Spirit, which rely on rock-bottom fares and sky-high fees to stay afloat.

Despite shedding $795 million in debt during the previous restructuring—partially converted into equity—Spirit has already burned through a $275 million liquidity facility. The airline has now hired financial advisors to help navigate a worsening cash crunch.

To cut costs, Spirit reduced capacity by nearly 24% in Q2, eliminated unprofitable routes, laid off staff, and even put pilots on unpaid leave. Still, the financial benefits of these drastic moves haven't significantly materialized. The company is now considering selling aircraft, gates, and real estate. At the same time, it's also trying to appeal to changing consumer preferences by adding "Big Front Seats"—larger, more comfortable seating options.

In its quarterly earnings report released in early August, the Dania Beach-based airline warned that weak demand for domestic leisure travel in the second quarter of 2025 could leave it unable to meet liquidity milestones and debt obligations established during its recently completed bankruptcy process. Its management has "substantial doubt" about the company's ability to remain afloat a year from now.

Though flights are currently running as scheduled, passengers holding travel credits are advised to use them soon. Annual membership holders may also consider not renewing.

Should restructuring fail, Spirit could cease operations altogether. In such a case, other airlines may step in to offer "rescue fares" to stranded travelers.

However, those who booked through third-party platforms like travel sites may face a rougher road. Filing complaints or requesting refunds through these channels is often slow and frustrating. Seeking chargebacks via non-U.S. banks can also be complicated. Some industry insiders recommend either avoiding Spirit altogether or booking directly through the airline's official website if necessary.

Source: THE WALL STREET JOURNAL, Yahoo Finance