Spirit Airlines files bankruptcy. How will it affect Milwaukee travelers?

Spirit Airlines filed for bankruptcy protection Monday after the airline reported increasing loses and large debts amid a growing market for budget travel in the U.S.
The budget airline announced on Monday it entered into an agreement with bondholders in an effort to reduce the total debt, according to an open letter to guests.
Spirit’s financial difficulties escalated earlier this year after its $3.8 billion merger with JetBlue Airways collapsed in January. The Justice Department sued to end the merger, arguing it would reduce competition and increase fares.
In Milwaukee, Spirit Airlines started serving the Milwaukee Mitchell International Airport in 2021 with daily nonstop flights to Orlando, Las Vegas and Los Angeles.
As Sprit enters the Chapter 11 bankruptcy process, here’s what Milwaukee travelers need to know about how it will impact their upcoming flights.
Spirit expects to continue operating its business as normal through the Chapter 11 bankruptcy process, wrote spokesperson Tommy Fletcher in an email to the Milwaukee Journal Sentinel.
Guests can continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal, said Fletcher.
Spirit offers nonstop flights from Milwaukee to Fort Lauderdale/Hollywood, Las Vegas, and Orlando, as well as seasonal flights during spring break. You can find a full list of nonstop flights out of Milwaukee here.
In case of any cancelations, the Department of Transportation also requires airlines to provide travelers with a full refund if their flight is canceled or delayed more than three hours for a domestic flight, and six hours on an international flight. Travelers only qualify for refunds if they choose not to travel on delayed flights or an alternative itinerary offered by the airline.
Generally, airline loyalty points or miles are not transferrable, but frequent flyer programs are valuable assets that often survive bankruptcies, said Robert W. Mann Jr., a former airline executive officer and current president of R. W. Mann and Co., an independent airline consultancy, to USA TODAY. 
“That is an asset, at least from the standpoint of people who might acquire them. You’re acquiring a customer base as well,” he said. “That actually could be a source of funding going forward.”
It’s also possible that Spirit will emerge from bankruptcy through a merger. Many industry watchers anticipate the incoming Trump administration will be more friendly to airlines joining forces than the Biden administration was. Under Biden, a proposed merger between Spirit and JetBlue was struck down, and Frontier Airlines also recently backed out of a bid to combine with its yellow ultra-low cost rival, as first reported by The Wall Street Journal. These deals could be revived, or another potential buyer could step in in a different regulatory environment.
If Spirit merges with another airline, it’s likely that the frequent flyer program will be part of the package and combined with that of the other carrier.
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It depends.
Spirit already doesn’t own all of its planes. For the part of its fleet that’s leased, the lessor will retain possession and will be free to re-lease to Spirit or another airline, depending on what offers are on the table.
Planes that Spirit does own could be sold off to raise cash during its bankruptcy, but the airline may choose to sell other assets like gates and airport slots instead if its managers feel the planes are more likely to generate income by remaining in service.