How is Spirit’s bankruptcy announcement affecting RSW travelers?

Spirit Airlines is heading to bankruptcy court right as we head into the busy holiday travel season, so how would this impact Southwest Florida travelers?

The country’s largest budget airline says it has lost more than $2 billion since 2020 and faces looming debt payments of more than $1 billion.

Speaking from Southwest Florida International Airport (RSW), WINK news anchor Claire Galt says, “Do not freak out.”

If you’re flying Spirit this weekend, for Thanksgiving or even for Christmas.

The airline and one expert both said travelers will be OK.

While bankruptcy sounds scary, it likely will not impact you—at least not for a while—so you don’t need to take any swift action.

One woman at RSW did not get that memo.

Giovanna Aliotta was not taking any risks with her Spirit Airlines ticket. On Monday afternoon, she had a tight grip on that little white paper.

“We were going to extend our day till tomorrow, and because they said it would be free to extend the one day, but we figured we better go today because we don’t know what’s gonna happen,” she said.

Aliotta saw the headlines: “Spirit Airlines files bankruptcy” and drove straight to RSW to get on a bright yellow plane and get home.

“We’re going to Little Egg Harbor, New Jersey, Ocean County,” she said. “This is really our first time flying in a while. We pray that’s gonna go OK until we get home.”

Florida Gulf Coast University economist Dr. Victor Claar understands Aliotta’s concern but said she jumped the gun.

Claar believes the airline will do everything it can to keep flights on track because the company certainly doesn’t want any more bad press.

“The last thing any airline wants is disrupted angry flyers,” said Claar, “because it ruins the brand, and at this point, Spirit needs to make sure that they preserve that brand value to the fullest extent possible.”

Spirit Airlines has struggled with looming debt, which only grew when the company tried to merge with Jet Blue in January. A federal judge stopped that deal in its tracks.

“They thought it would be bad for competition,” said Claar.

But it led to even more problems for Spirit.

Now the airline has to put in the work.

“To find a way to restructure their finances,” noted Claar.

Claar compared it to Hertz Rental Cars, headquartered here in Southwest Florida.

Hertz declared bankruptcy in 2020 but was able to successfully restructure. Claar believes Spirit will do the same.

And, by the way, Aliotta’s flight was on time today. In fact, all Spirit flights were.