Spirit Airlines Reimburses Most Customers After Shutting Down Operations

Spirit Airlines said it has reimbursed most customers holding flight tickets after the budget carrier ceased operations.

The airline is still processing a small percentage of customer refunds, Spirit told CBS News.

Spirit announced early Saturday that it had started an orderly wind-down of operations after efforts to obtain a $500 million federal bailout failed. The airline pledged to automatically process refunds for any flight purchased with a credit or debit card.

Eric Rosen, director of travel content at The Points Guy, explained that under federal law, consumers are entitled to refunds when a business fails to deliver a purchased service. By contrast, he said Spirit customers who paid cash for a ticket or used airline loyalty points are not eligible for a refund, noting that such points can't be transferred to another airline's rewards program.

Spirit said Saturday that compensation for passengers who booked flights with a voucher, credit or Spirit points will be determined at a later date through the bankruptcy process.

Some other airlines stepped up to help Spirit passengers whose flights were canceled. United Airlines, which offered so-called rescue fares to stranded Spirit passengers, said it rebooked some 14,000 Spirit customers on its own flights. The company is also offering special fares to Spirit customers through May 16.

American Airlines, Delta Air Lines, Frontier Airlines and Southwest Airlines also announced limited-time discounted fares for stranded Spirit customers.

Spirit's exit from the market leaves room for airlines to replace service on some routes and grab market share. On Monday, just two days after Spirit's official demise, JetBlue added 11 new routes from Fort Lauderdale and announced a status match for Spirit Frequent Flyers.

For a limited time, JetBlue is awarding Spirit Airlines loyalty members equivalent status at JetBlue.