What will a Spirit Airlines shutdown mean for travelers?
A potential Spirit Airlines shutdown could lead to higher airfares and reduced flight options across the U.S. as the low-cost carrier exits the market. Industry experts warn that reduced capacity and rising fuel costs would drive up ticket prices on other airlines. Passengers with future Spirit flights may be eligible for refunds, while some competing airlines are preparing to assist stranded travelers.
- ▪Spirit Airlines may cease operations within 24 hours unless a $500 million federal bailout is approved.
- ▪A CBS News analysis found that when Spirit exits a route, average fares rise by 23% and passenger volume drops by 20%.
- ▪Customers who paid with a credit card can dispute charges if Spirit shuts down, but those who paid with cash or loyalty points may not receive compensation.
- ▪United and American Airlines are preparing to support Spirit customers, including implementing fare caps on overlapping routes.
- ▪Industry analysts caution that 'rescue fares' from other airlines will likely be more expensive than Spirit's ultra-low prices.
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MoneyWatch What would a Spirit Airlines shutdown mean for travelers? .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Megan Cerullo, Megan Cerullo Reporter, MoneyWatch Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting. Read Full Bio Megan Cerullo, Kris Van Cleave, Kris Van Cleave Kris Van Cleave Emmy Award-winning journalist Kris Van Cleave is the senior transportation correspondent for CBS News based in Phoenix, Arizona, where he also serves as a national correspondent reporting for all CBS News broadcasts and platforms.
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