Spirit Airlines plans to confirm to TPG on Tuesday that the airline is ready to make substantial cuts to its schedule and network. The airline also said it will be downgraded or downgraded to 140 captains as of October 1.
A spiritual spokesperson confirmed the workforce reduction in the year-end and said it was necessary to “better align with our flight schedule.”
“We are taking the necessary steps to ensure we operate as efficiently as possible, which is part of our return to profitability,” the statement said. “We recognize the weight of this decision and are committed to treating all affected teams with compassion and respect in the process.”
The leave was first reported by Bloomberg. Spirit also addressed pilots and cut other jobs in 2024.
Spirit has not provided details about the upcoming cuts, although airlines have cut many routes and frequencies in several different moves since the end of 2024.
The spirit emerged from the Chapter 11 bankruptcy in March, after the company’s restructuring underwent a major restructuring that converted $795 million in capital debt into equity and received $350 million in equity boost from investors. The airline has appointed a new CEO, Dave Davis, after CEO Ted Christie resigned as part of the restructuring.
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The airline attempts to reposition itself as a premium airline among budget competitors by offering advanced travel options such as top-notch seats, and therefore attempts to divert profitability from its ultra-low-cost business model. Since the beginning of the Covid-19 pandemic, American airlines have increasingly relied on premium revenues, and traditional operators have learned to master the concept of “basic economy” and to some extent neutralize competitive advantages, such as the ultra-low-cost airlines that Spirit had previously enjoyed.
Still, the airline is facing growing challenges on the other side of bankruptcy after reporting a net loss of more than $1 billion in 2024. Other airlines have net losses of more than $1 billion. Domestic travel demand in other industries is getting higher and higher than expected this year.
Although the airline attempted to merge with JetBlue in 2023 to avoid bankruptcy or even bankruptcy, a federal judge in early 20024 removed the merger. Frontier Airlines made a proposal to acquire spirit in late January, suggesting another restructuring option for troubled Carrier. But the spirit rejected Frontier’s proposal.
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