Spirit Airlines is teetering on the brink of closure as it battles to emerge from bankruptcy amidst surging fuel expenses.

A recent Bloomberg report suggests that the airline might face liquidation as early as this week, with escalating fuel prices, exacerbated by the conflict in Iran, playing a significant role.

As the leading ultra-low-cost airline in the United States, Spirit is recognized for its yellow aircraft and straightforward service. It operates primarily from the historic Terminal A at LaGuardia Airport.

Headquartered in Florida, Spirit is navigating its second bankruptcy. Last month, the airline unveiled plans to revamp, including modernizing its fleet, offering premium ticket options, and strengthening its presence on key routes such as Fort Lauderdale, Orlando, LaGuardia, and Newark.

Travel industry expert Zach Griff, who writes the From the Tray Table newsletter, warns that if Spirit ceases operations, it could trigger a widespread increase in ticket prices across the airline industry.

“Fuel costs could be the deciding factor for Spirit’s fate,” Griff remarked. “I would be deeply saddened by Spirit’s loss, not necessarily because I’m a frequent flyer, but because their presence helps maintain competitive pricing throughout the industry. Their recent rebranding has improved the experience significantly.”

Typically, when airlines liquidate, they immediately cease operations, which is unsettling news to those who may have upcoming flights booked.

Griff says there are ways to protect yourself.

“The credit card companies will end up being the ones who foot the bill or kind of help you out with getting that refund if Spirit were to liquidate, you know, through chargebacks and things like that,” Griff said.