If you've got a Spirit flight booked or you're thinking about booking one, I need to share some important news that broke this week. Spirit Airlines just issued a warning to investors that has a lot of travelers asking: "Should I be worried about my upcoming trip?"

Here's what happened, what it means for you, and exactly what you should do if you have Spirit travel coming up.

What's Actually Happening with Spirit?

On Monday evening, Spirit Airlines filed a quarterly financial update that included some concerning language. The airline warned that there's "substantial doubt as to the company's ability to continue as a going concern within 12 months."

Translation? Spirit is struggling to generate enough cash to keep up with its debt obligations and creditor requirements. The airline is actively looking at selling planes, airport gates, or other assets to raise money. If those efforts don't work, Spirit could face another bankruptcy filing—or worse, complete liquidation.

This isn't Spirit's first rodeo with financial trouble. The airline already went through Chapter 11 bankruptcy in November 2024 and emerged in March with less debt but the same fundamental challenge: making money. Since exiting bankruptcy, Spirit has posted a $186 million operating loss.

Should You Be Worried About Your Booked Flights?

Here's the bottom line: if you're flying Spirit in the next few weeks or even the next couple of months, you're probably fine. The company's warning looks at a 12-month timeline, not tomorrow's flight schedule.

That said, there's one date worth keeping an eye on: December 31, 2025. That's when Spirit must renegotiate its agreement with its credit card processor—a deal that could require additional collateral and reduce the airline's available cash.

Your Action Plan Based on When You're Flying

Flying in the next 30 days: Go ahead with your trip as planned. Spirit is still operating normally.

Flying 1-6 months out: Consider your backup options but don't panic. Keep an eye on Spirit's financial updates.

Booking new flights for 6+ months out: I'd honestly look at other airlines first. The uncertainty isn't worth the potential headache.

The Travel Insurance Question Everyone's Asking

A lot of you are probably thinking about travel insurance right now. Here's what you need to know: not all policies cover airline failures. You'll need specific "financial default" coverage.

If you're looking for comprehensive travel protection, InsureMyTrip offers comparison tools to find policies that include airline bankruptcy coverage. Just make sure you read the fine print—some policies only cover if the airline fails within a certain number of days before your trip.

Pro tip: If you booked your Spirit flight with certain credit cards, you might already have trip protection. The Capital One Venture X includes trip cancellation insurance up to $10,000 per person, though you'll want to check if airline bankruptcy specifically triggers coverage.

What This Means for Flight Prices (Spoiler: They're Going Up)

Here's where this gets interesting from a points and miles perspective. If Spirit reduces routes or shuts down entirely, other airlines will likely raise prices on those routes. Basic economics—less competition means higher fares.

Frontier Airlines is Spirit's biggest competitor in the ultra-low-cost space. Barry Biffle, Frontier's CEO, recently said they expect to be the "last man standing in the low-cost space." That's not exactly comforting for travelers who rely on budget airlines.

Which Routes Could See the Biggest Price Jumps

Spirit has major operations at several airports where their departure could significantly impact pricing:

Fort Lauderdale (FLL): Spirit's largest hub

Detroit (DTW): Major focus city

Las Vegas (LAS): Significant presence

Chicago (ORD): Growing operation

If you frequently fly these routes, it might be time to start thinking about accumulating points with other airlines.

Your Points and Miles Strategy Going Forward

This Spirit situation actually highlights why diversifying your points portfolio matters. If you've been relying heavily on one airline or assuming ultra-low-cost carriers will always be there, it might be time to adjust your strategy.

Credit Cards to Consider for Flexible Travel Options

Capital One Venture X: Transfer to 15+ airline partners, so you're not locked into one program

Capital One VentureOne: No annual fee option for earning transferable miles

Chase Sapphire cards: Ultimate Rewards transfer to multiple airlines

What About Spirit's Loyalty Program?

If you have Spirit miles, here's the harsh reality: loyalty program points are generally worthless if an airline liquidates (goes out of business completely). However, if Spirit files for bankruptcy again but continues operating, your miles might survive.

My advice? Use any Spirit miles you have sooner rather than later. Don't let them sit in your account hoping for a better redemption opportunity.

Opportunities for Savvy Travelers

Every airline crisis creates opportunities for prepared travelers. Here's how to position yourself:

1. Monitor Alternative Airlines

Southwest: Strong financial position, excellent customer service

JetBlue: Could expand in Spirit's former markets

Frontier: Likely to add routes if Spirit pulls back

2. Book Flexible Fares When Possible

Even if it costs a bit more upfront, flexibility is worth it during uncertain times. Many airlines have dropped change fees, making this easier.

3. Consider Points Bookings

Award tickets often have better protection than cash bookings. If an airline cancels your award flight, you typically get your points back plus sometimes additional compensation.

What Other Airlines Are Watching

This situation isn't happening in a vacuum. Other airlines are already positioning themselves to benefit:

Frontier could end up as the only major ultra-low-cost carrier

Sun Country might expand at Detroit (DTW)

JetBlue and United are eyeing Spirit's gates at Fort Lauderdale

For travelers, this could mean some new route options but likely at higher prices than Spirit was charging.

The Bigger Picture for Budget Travel

Spirit's troubles reflect broader challenges in the ultra-low-cost airline model. These carriers make money by charging rock-bottom base fares then adding fees for everything else. But when economic pressure mounts, that thin-margin business model becomes incredibly difficult to sustain.

This doesn't mean budget travel is dead, but it might mean we return to a more traditional model where "low-cost" means something like Southwest rather than the ultra-stripped-down Spirit approach.

Your Next Steps

If you have Spirit flights booked:

Screenshot your confirmation details (just in case). Check what protections your credit card offers for trip disruptions. Consider travel insurance if you don't already have it. Have backup airlines in mind for your route. Use any Spirit miles you're sitting on.

If you're planning future travel:

Book with established carriers for trips more than 6 months out. Build points with multiple programs rather than concentrating with one airline. Consider cards with transferable points for maximum flexibility.

What We're Watching

I'll be keeping an eye on Spirit's situation and will update you with any significant developments. Key dates to watch:

Monthly financial reports for signs of improvement or deterioration.
‍December 31, 2025: Credit card processor agreement renegotiation.
‍Route announcements: Which flights Spirit might cut to save money.

The travel landscape is always changing, and sometimes these changes happen faster than we'd like. The key is staying informed and having backup plans.

Final Thoughts

Look, I'm not trying to panic anyone here. Airlines go through financial stress regularly, and many survive. But Spirit's warning is serious enough that you should pay attention.

The bottom line? If you're flying Spirit soon, you're probably fine. If you're booking far in advance or are a frequent Spirit flyer, it's time to have some backup plans.

This whole situation is also a good reminder of why credit cards with travel protections and flexible points programs are so valuable. When airlines struggle, having options becomes incredibly important.

Stay flexible out there, and I'll keep you updated as this story develops.