When an airline like Spirit Airlines goes out of business, customers who booked directly with the airline using credit or debit cards should receive automatic refunds, while those who booked through third-party agencies must contact those companies directly, and compensation for vouchers, credits, or points is handled through bankruptcy proceedings; additionally, the departure of a major airline from the market may allow remaining airlines to raise prices due to reduced competition.
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What to know about getting refunds after Spirit Airlines shutdownAdded:
I never ever would have thought that an airline would just up and one day just go out of business without warning.
>> Romesha Burton needed an affordable flight from Texas to Georgia to help her daughter move. After asking social media which airline was best, she booked with Spirit.
>> It was $125. So, I was like, "Okay, I'm good."
Everything was set for her May 8th flight until one morning I got a lot of messages and I opened up one and it said Spirit is gone out of business and I'm like is this for real?
>> Yuri Kunza from Nashville was also caught off guard. He says he often relied on Spirit to travel between Tennessee and Peru to visit his mother.
>> There was this ice storm that had impacted us. I opted to buy an additional ticket knowing that I still could cancel and then keep the value.
>> Now, he's unsure if he'll ever get any money back. Spirit says customers who book directly with a credit card or debit card should get automatic refunds, but if you book through a third party contact that company directly and for vouchers, credits or points, compensation will be handled through bankruptcy. Terresa Murray, consumer watchdog at US Per, says the effects could reach beyond Spirit customers. So bottom line, planes are going to be more full. The airlines are already under pressure because of rising jet fuel costs, but certainly having one of the 10 largest airlines no longer in business may give the other nine airlines cushion to go ahead and raise their prices. If you had a spirit flight and still need to rebook, the DOT says several airlines offer limited time help for impacted customers. Take a look at things from our point of view. Maybe you should talk to more real people that are out here living everyday life with this watch in your wallet. I'm Karice Jackman.
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