Additional Coverage:
- Spirit CEO says struggling airline will slash flights, braces employees for more job cuts (cnbc.com)
Spirit Airlines Braces for More Turbulence with Looming Job Cuts and Flight Reductions
Just weeks after its second bankruptcy filing in under a year, Spirit Airlines CEO Dave Davis announced impending job cuts and a 25% capacity reduction for November. In a memo to employees, Davis stated the cuts are necessary to “optimize our network” and focus on stronger markets. This reduction mirrors the capacity cuts implemented after the airline’s emergence from bankruptcy in March.
Davis acknowledged the impact on employees, stating that the airline’s restructuring will “inevitably affect the size of our teams.” While the exact number of affected employees remains unclear, Spirit confirmed it is in discussions with labor unions regarding the impact of these adjustments.
The airline aims to slash $100 million annually from its pilot group’s budget. COO John Bendoraitis indicated a willingness to negotiate with the Air Line Pilots Association (ALPA) until October 1st to reach an agreement. However, ALPA cautioned its members that their contract will likely be affected, and if a deal isn’t reached by the deadline, Spirit may seek relief from contractual obligations under bankruptcy protection.
This announcement follows previous furloughs and demotions for hundreds of pilots and voluntary unpaid leaves for some flight attendants. The Association of Flight Attendants-CWA stated they are prepared for any further action the airline may take.
Spirit’s previous emergence from bankruptcy in March proved short-lived. Despite a deal with bondholders, the airline struggled with high costs and weaker than anticipated domestic travel demand, reporting nearly $257 million in losses between March 13th and the end of June. These latest cuts come on the heels of Spirit’s recent announcement of flight cuts to 11 destinations and the cancellation of plans for a 12th, leaving competitors vying for its customer base.