What Happened

Spirit Airlines and the U.S. government's $500 million rescue plan failed to reach an agreement. Due to a lack of funding, the airline has now stopped operating all flights, and all flights have been canceled starting May 2. In other words, both future flights and unused tickets can no longer be used for travel as planned.

What to Do If You Have a Spirit Ticket

  • Step 1: Save all booking records, emails, and flight cancellation notices
  • Step 2: Try contacting the airline or submitting a refund request through its website (even if the chances are low, it is still worth going through the process)
  • Step 3: Prepare to file a credit card dispute (chargeback)

This is a classic case of "service not rendered," and banks will usually support a dispute in this situation.

Will Credit Card Travel Insurance Help?

Many people's first instinct is to use their credit card insurance, but keep in mind:

  • Most credit card trip cancellation / interruption insurance does not cover airline bankruptcy or shutdowns
  • We reviewed the common credit card insurance terms from AMEX and Chase, and both exclude this type of situation

So, do not focus too much on filing an insurance claim here, since the odds of success are relatively low.

A More Practical Option: Credit Card Dispute

A more direct and effective approach is to file a dispute with your card issuer:

  • Reason: service not rendered
  • Evidence: flight cancellation notices, news of the shutdown, and your booking records
  • Timing: submit as early as possible so you do not miss the dispute deadline

Generally speaking, banks tend to rule in favor of the customer in cases like this.

Bottom Line

After Spirit Airlines stopped operating, these tickets can essentially be treated as unable to be honored. The most practical approach is to first try to get a refund, and then file a credit card chargeback if needed, rather than relying on credit card insurance.

If you paid for your ticket with a credit card, you will often have a good chance of getting your money back in this kind of situation. If you paid with cash or through another method, resolving it may be much more difficult.