By Megan Cerullo, Kris Van Cleave and Sarah Ploss
Updated on: May 2, 2026 / 3:17 AM EDT / CBS News
Spirit Airlines announced it had “started an orderly wind-down of operations, effective immediately” after efforts to secure a $500 million federal bailout stalled, and all Spirit flights were canceled. Industry experts say the carrier’s exit will ripple through commercial aviation and likely push fares higher.
Why fares may rise
When capacity falls and demand stays the same or rises, airfares generally increase, CBS News travel editor Peter Greenberg said. A CBS News analysis of Cirium data found average round-trip fares rose about 23% (roughly $60) when Spirit left a route, and passenger volume dropped about 20%. Higher jet fuel costs linked to the Iran war are already putting upward pressure on prices, compounding the effect.
If you have a Spirit ticket
– Refunds: Customers holding tickets for future Spirit flights are entitled to full refunds if the airline ceases operations. Spirit said it will automatically process refunds for flights purchased with a credit or debit card and set up spiritrestructuring.com for questions.
– Credit card purchases: If the airline stops operating, passengers should contact the credit card company to dispute charges as a non-delivery of service, experts advised.
– Cash, vouchers, points: Travelers who paid cash, used vouchers, credits or Spirit points face more uncertainty. Spirit said compensation for those bookings will be determined through the bankruptcy process. Points generally cannot be transferred to other airlines.
– Don’t cancel prematurely: Points Path founder Julian Kheel and other experts advise keeping your ticket rather than canceling without a refund promise; use chargebacks or disputes if needed.
Getting home and rescue fares
An abrupt shutdown could leave some passengers needing to buy last-minute tickets. United, American, JetBlue and Frontier said they were prepared to support Spirit customers and employees. American implemented fare caps on Main Cabin tickets for Spirit routes where it offers nonstop service; rescue fares may be offered by other carriers but could still cost more than expected and may not cover every route. Keep copies of itineraries in case another airline requires proof.
Longer-term market effects
Filling Spirit’s network won’t be immediate—airlines’ summer schedules are largely committed—so fares may stay elevated in the near term. Over three to six months, low-cost carriers such as Frontier, Avelo, Breeze and Allegiant may move to enter markets Spirit vacated, but that likely won’t fully offset initial price increases. Industry analyst Henry Harteveldt and others expect budget carriers to try to backfill routes, yet overall upward pressure on fares is likely.
Bottom line
Spirit’s presence helped restrain fares despite mixed customer sentiment. Its shutdown is expected to raise ticket prices for many routes, add uncertainty for passengers holding Spirit bookings—especially those who paid with cash or points—and prompt limited short-term relief from other carriers through rescue fares or fare caps.