Is Spirit Airlines shutting down? What to know if you have tickets

PHILADELPHIA (WPVI) -- If you're booking a flight or have an upcoming trip on Spirit Airlines, pay close attention.

The airline could reportedly liquidate any day now and shut down.

Spirit has been trying to recover from its second bankruptcy in less than a year, but is now facing the added challenge of soaring fuel prices. The situation has customers with Spirit tickets understandably nervous, and there are some important lessons here for all consumers booking future travel.

READ MORE | Spirit Airlines reportedly on the verge of shutting down amid bankruptcy, rising fuel costs

If the airline does shut down, the best-case scenario is for consumers who bought their tickets with a credit card.

Jeff Rolander of Faye Travel Insurance says, "Just as if you bought something online and it was never delivered to you by the merchant, you can file a claim with that credit card company for the flight that was not provided to you."

He also says, "Many travel insurance policies do cover this kind of situation. It's too late to buy travel insurance to protect yourself against this now because it's already a known event. But for customers who bought travel insurance and are flying on Spirit Airlines, it's definitely worth contacting your travel insurance company to determine if you do have this kind of coverage."

This type of coverage is called Financial Default or Financial Insolvency Coverage. Many, but not all, comprehensive policies include it, and be aware that a comprehensive policy is different from the simple flight insurance you're offered at check-out when you're buying an airline ticket.

Rolander tells Action News that comprehensive travel insurance costs "typically a percentage of the total trip cost, and sometimes it may depend on the age of the travelers, but five to 10% is a reasonable expectation."

Travel agents often offer insurance as an add-on to bookings. Another pro of using a travel advisor is that they often see situations like this earlier and are likely to be proactive in rebooking customers.

Spirit says it does not comment on rumors and speculation, but its competitors have already added flights to some of its destinations.

And again, the lesson here is it's best to purchase your airline tickets with a credit card. Also, while travel insurance can be a good idea, always read the fine print because coverages vary by a lot.