Spirit Airlines suspended operations and filed for Chapter 11 bankruptcy in November 2024. Cardholders of the Spirit Airlines Free Spirit® credit card face uncertainty about rewards, redemptions, and the card's future.
The card remains active for now. You can still use it for purchases and earn rewards. But Spirit's collapse creates real problems. Existing miles won't disappear immediately, but their value depends entirely on whether anyone acquires Spirit's loyalty program or if miles become worthless.
Here's what matters: The Free Spirit® card likely issued through a third-party bank, not Spirit itself. This separation gives the bank some flexibility. Cardholders can still redeem miles for flights on other airlines through partner programs, but that option may shrink if partnerships dissolve.
Annual fees remain your responsibility. If your card charges a yearly fee, the bank will continue billing you. You should monitor statements closely. Request a refund if you can no longer use core card benefits.
If you hold Spirit miles, don't wait. Redemption options narrow daily as partnerships end and vendors halt mile acceptance. Use miles quickly on partner airlines or other redemption options before windows close completely.
For new purchases, the card offers diminishing value. The rewards structure only benefits frequent Spirit flyers, which is no longer viable. Switch to a general travel credit card or cash-back card offering better flexibility.
Contact your card issuer directly. Banks sometimes waive annual fees for customers of defunct airlines or offer alternative products. Some issuers provide card conversions to different travel rewards cards with transferred balances.
Spirit's bankruptcy affects cardholders differently based on account type and redemption choices. Act now rather than hope the situation improves. Loyalty programs rarely recover full value after airline collapse.
THE TAKEAWAY: Use remaining miles immediately on partner airlines, switch to a better rewards card for new purchases, and contact your bank