WEST PALM BEACH, Fla. (CBS12) — Your Spirit Airlines flight is still taking off — for now. But new financial pressure on the already-bankrupt airline is raising fresh questions about what happens if that changes.

The Dania Beach-based budget carrier, which operates heavily out of Fort Lauderdale-Hollywood International Airport, remains under Chapter 11 bankruptcy protection as it works to restructure its debt and stay in business.

New concerns come as jet fuel prices surge — a spike analysts have linked to escalating tensions in the Middle East — adding pressure to an airline already operating on thin margins.

That combination, along with ongoing negotiations with creditors, has raised the possibility of a worst-case scenario: liquidation.

Spirit declined to comment on reports of a potential liquidation, telling CBS News it does not respond to market speculation.

A major South Florida presence

For now, Spirit continues to run a steady schedule across the region, where it plays a major role in low-cost travel.

As of Friday:

Fort Lauderdale-Hollywood International Airport (FLL) is seeing 23 arrivals and 18 departuresMiami International Airport (MIA) has 11 arrivals and 10 departuresPalm Beach International Airport (PBI) shows just one arrival and one departure

While Palm Beach County has limited service, many local travelers rely on Spirit through Fort Lauderdale and Miami, where the airline offers significantly more routes and lower fares.

Spirit Airlines, the Dania Beach-based budget carrier which operates heavily out of Fort Lauderdale-Hollywood International Airport, remains under Chapter 11 bankruptcy protection as it works to restructure its debt and stay in business. (WPEC)

Spirit Airlines, the Dania Beach-based budget carrier which operates heavily out of Fort Lauderdale-Hollywood International Airport, remains under Chapter 11 bankruptcy protection as it works to restructure its debt and stay in business. (WPEC)

Why this matters now

Spirit has already been cutting routes and reducing costs as part of its restructuring.

The airline had more than 200 aircraft when it filed for bankruptcy last year and planned to shrink its fleet to around 80 jets by later this year, according to CBS News.

At the same time, jet fuel prices have surged in recent months — putting additional strain on a business model built around ultra-low fares.

Unlike larger carriers, budget airlines have less flexibility to absorb sudden cost increases or quickly raise prices without losing customers.

What travelers should know

According to the U.S. Department of Transportation, a bankruptcy filing does not automatically cancel flights. Airlines can continue operating while restructuring — which is what Spirit is currently doing.

However, if financial conditions worsen, a company can move from restructuring to liquidation, shutting down operations entirely.

See also: Low fares at risk? Spirit Airlines uncertainty could impact South Florida travelers

If your flight is canceled

If Spirit cancels flights, refunds may not come quickly.

The Department of Transportation warns that during bankruptcy, airlines may have limited ability to issue refunds as they work to conserve assets.

Travelers still have options:

Passengers who paid with a credit card may be able to dispute the chargeTravel insurance may cover some losses, depending on the policyFiling a claim in bankruptcy court is possible, though passengers are often among the last to be paidIf the airline shuts down

If Spirit were to stop operating entirely:

Future flights would not be honoredTravelers would need to book new flights on their ownRefunds could be delayed — or reducedWhat travelers should do now

There are no confirmed plans for Spirit to shut down, and flights continue to operate.

But with uncertainty growing, travelers may want to:

Monitor flight updates closelyUse a credit card when bookingAvoid booking far in advance for critical tripsConsider backup options if travel is time-sensitiveThe bigger picture

Spirit has long been one of the country’s leading ultra-low-cost carriers, particularly in South Florida.

If the airline were to shut down, it could reduce competition and drive up fares — especially at Fort Lauderdale, where it operates a large share of flights.

For now, the planes are still in the air.

But as costs rise and financial pressure builds, the situation remains fluid — and for travelers, it’s one worth watching closely.