If you’re a frequent flyer with budget airlines, we have some pretty big news.

©Spirit Airlines

According to ABC News, Spirit Airlines could be headed for liquidation. The popular budget airline hasn’t formally commented on the rumors, saying the company “[does not] comment on market rumors and speculation.” Despite this, reports are saying the airline could “go out of business overnight.”

Earlier this week, reports started circulating that Spirit Airlines is “navigating financial restructuring” that could lead to the airline’s closure. Bloomberg shared that the airline could start selling off its assets in the next few days, according to multiple sources with knowledge of the situation.

Spirit Airlines at Orlando Airport

Despite the concerns, Katy Nastro, a travel expert with the airfare monitoring site Going, said there is “no way of knowing when and if an airline will liquidate, leaving customers stranded.” She also noted it isn’t a secret that the airline has been struggling for a few years after the pandemic.

©Spirit Airlines

It is important to note that it’s pretty rare to see an airline liquidate, but Ben Mutzabaugh, senior managing editor for aviation at The Points Guy, said, “There’s not much more corrective action they can do — they are up against the wall.” He said if the liquidation does occur, that’s a good sign the airline will be going out of business. In the past, when airlines have liquidated in this way, they have essentially shut down “overnight,” according to a CBS reporter.

©Spirit Airlines

If this does happen, other airlines already have plans in place for what’s called “rescue fares.” These tickets are discounted tickets that will offer people a one-way ticket home if Spirit were to actually shut down. While we can’t be sure what will happen just yet, if you’re flying with Spirit Airlines anytime soon, it will be a good idea to have a plan in place to get you home if needed. 

Spirit Airlines

Spirit Airlines is continuing to operate normally, with flights taking off as scheduled and the company continuing to accept new bookings. The airline has filed for bankruptcy twice in recent years, once in August 2025 and earlier in November 2024. Many are listing rising fuel costs as an additional issue for the airline, as well as other budget airlines.

Frontier Plane at the Orlando Airport

The airline is Florida-based, so this could also mean issues for travelers headed to the beach or to theme parks this summer. So what do you do if you have a Spirit ticket booked right now? Katy Nastro says if their airline does liquidate, you should “not cancel outright, because then you forfeit your right to a refund if there’s still some money left over to be able to do so.” Experts also shared that those most likely to get their money back are the ones who booked with a credit card.

Spirit Airlines

We will be sure to monitor these changes closely. Be sure to keep following DFB for more travel news, updates, and more.

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