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ALWAYS FRED > Travel > Spirit Airlines: What rights do passengers have if the airline goes bankrupt?
Spirit Airlines: What rights do passengers have if the airline goes bankrupt?
Travel

Spirit Airlines: What rights do passengers have if the airline goes bankrupt?

May 4, 2026 4 Min Read
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  • bank card chargeback
  • Journey insurance coverage protection
  • rescue fare

With Spirit Airways suspending flights over the weekend and Ryanair boss Michael O’Leary warning that two or three European airways might go bankrupt by this winter, many vacationers are understandably involved about reserving flights.

Below regular circumstances, airways must difficulty refunds or rebook you on one other flight after a cancellation, however in chapter there is not any one to truly do this as a result of the airline ceases to exist.

Fortunately, Spirit Airways clients have been informed that refunds for future flights shall be issued robotically, however that is not all the time the case.

For instance, when Icelandic low-cost airline WOW Air ceased operations in 2019, the airline suggested passengers to first strive submitting a declare by means of their bank card firm or journey insurance coverage.

In case you want peace of thoughts earlier than you begin paying in your flight, this is what you are able to do if the airline you booked with goes out of enterprise.

bank card chargeback

In case you booked a flight utilizing a bank card, you need to have the ability to provoke a chargeback towards your card supplier based mostly on the provider (on this case, the airline) failing to offer the service you paid for.

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The identical cannot be mentioned for making purchases with a debit card, however the guidelines differ from nation to nation.

For instance, the 2020 European Fee report on chargebacks within the EU/EEA states that customers in Denmark and Portugal might be able to submit prices with debit playing cards.

Journey insurance coverage protection

In case you have booked journey insurance coverage earlier than your journey, it’s price checking whether or not it consists of ‘common airline breakdown insurance coverage’ or ‘finish provider breakdown insurance coverage’.

That is often not supplied as customary, however could also be added to your protection.

If that is included, your journey insurance coverage can cowl issues like the price of shopping for a brand new ticket or the price of a ticket you’ll be able to’t use, however every insurance coverage firm has totally different insurance policies.

Some bank cards embody journey insurance coverage, however once more you need to examine your particular person coverage.

rescue fare

Reserving last-minute flights can value you an arm and a leg, but when your airline goes out of enterprise whilst you’re touring, you might be able to e book a “aid fare” on one other airline.

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For instance, JetBlue Airways is providing $99 one-way rescue fares to passengers scheduled to fly on Spirit Airways by means of Wednesday, Might sixth, whereas Delta Air Strains introduced on Might 2nd that it will likely be providing discounted fares for the following 5 days.

Different airways providing rescue fares embody United Airways and Southwest Airways.

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