Spirit Airlines announced Wednesday that it will reduce its flight capacity in November by 25 percent compared to November 2024 as the ultra‑low‑cost carrier grapples with mounting financial challenges.
The reduction is part of a broader effort by Spirit to focus on its most profitable routes following its second Chapter 11 bankruptcy filing in under a year.
CEO Dave Davis, in a September 17 memo to employees obtained by CNBC, acknowledged that job cuts are likely, stating that “these evaluations will inevitably affect the size of our teams as we become a more efficient airline,” though he did not specify how many positions may be impacted.
“Unfortunately, these are the tough calls we must make to emerge stronger,” Davis continued. “We know this adds uncertainty, and we are committed to keeping you as these decisions are made.”
Beginning October 1, about 270 Spirit pilots will be furloughed, and from November 1, some 140 pilots will be demoted from captain to first officer.
“This bankruptcy will be much more difficult than the last one and we must be prepared to act to protect our interests as flight attendants,” Spirit flight attendants’ union, the Association of Flight Attendants-CWA, said in a statement reviewed by CNBC.
The Independent has contacted representatives for Spirit and the Association of Flight Attendants-CWA for comment.
Spirit’s financial troubles include having filed for bankruptcy protection on August 29 for the second time in less than a year.
It emerged from its first bankruptcy on March 13, after cutting its debt by about $795 million. However, the airline quickly faced renewed financial difficulties, prompting pilot furloughs, aircraft sales, operational cutbacks, and other cost-saving efforts.
The carrier also recently cut service to 11 U.S. cities effective October: Albuquerque, Birmingham, Boise, Chattanooga, Columbia, Oakland, Portland, Sacramento, Salt Lake City, San Diego, and San Jose.
A new Spirit route to Macon, Georgia, has also been scrapped.
In August, Spirit warned it may not survive another year without raising more cash despite the restructuring and announced furloughs for the fall.
“Because of the uncertainty of successfully completing the initiatives to comply with the minimum liquidity covenants and of the outcome of discussions with Company stakeholders, management has concluded there is substantial doubt as to the Company’s ability to continue as a going concern within 12 months from the date these financial statements are issued,” Spirit said in its quarterly report.
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