After Spirit Airlines ceased operations Saturday, customers who purchased tickets using a debit or credit card have been issued refunds. But what about passengers who used loyalty points?
A spokesperson for a consulting firm working on Spirit’s behalf said compensation for customers who booked flights using other methods — including vouchers, credits or Free Spirit points — will be determined later through the bankruptcy process.
In effect, loyalty club members will be treated like other creditors to whom Spirit owes money.
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Spirit said on its website that points cannot be transferred to other airlines and that the annual fee for the Spirit Saver$ Club membership will not be refunded.
The airline is seeking buyers for its assets. A judge will then need to decide how to use those funds to resolve remaining debts, including loyalty points.
According to travel site The Points Guy, customers generally are not considered a high-priority debt when an airline liquidates its assets.
“Typically, during a bankruptcy and liquidation scenario, consumers are among the last to get their money back,” The Points Guy said. “Whatever funds and assets are left typically go to creditors first, then to various other parties, and finally to customers and employees, near the bottom of the list.”
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Spirit also said customers who booked travel with other airlines, or needed to purchase accommodations after abrupt flight cancellations, should not expect compensation.
