Spirit Airlines Faces "Survival Month" Amid Bankruptcy Deadline

While many airlines are celebrating growth, Spirit Airlines enters a critical "survival phase" today as it navigates the latest developments in its ongoing Chapter 11 bankruptcy. 

Following a request to the court last week, Spirit is working toward a February 25 deadline to solicit votes from creditors on its reorganization plan. The airline, which has been under court-protected restructuring since August 2025, is reportedly running low on the emergency funding it secured late last year, making the next four weeks a "make-or-break" period for the ultra-low-cost carrier.

Industry analysts are warning that if a restructuring plan or a merger partner (likely Frontier Airlines) is not finalized by early spring, the carrier could face a "Scenario 3" liquidation. 

For travelers, this creates a period of intense uncertainty regarding future bookings and the value of "Free Spirit" loyalty points. While Spirit continues to operate its normal flight schedule today and all current tickets are being honored, the "shadow of insolvency" is making some travelers hesitant to book for the upcoming summer season.

The outcome for Spirit is a major story for U.S. domestic fare competition. If the carrier fails or is absorbed, budget-conscious travelers could see a significant rise in ticket prices on routes where Spirit previously served as a low-cost anchor. 

For now, the Department of Transportation is monitoring the situation closely to ensure that passenger rights are protected, but the message for 2026 budget travelers is to "monitor and document" every Spirit booking as the court proceedings reach their climax this month