Spirit Airlines CEO Dave Davis said on Wednesday that there will be job cuts, and that the carrier will slash its schedule in November. These cost-cutting efforts come weeks after the airline declared its second bankruptcy in less than a year.
Davis told employees through a memo, which reportedly said that they will see a 25% cut in capacity over 2024 “as we optimize our network to focus on our strongest markets.” The airline saw a similar cut when it first came out of bankruptcy in March through the end of June.
The struggling discount airline is in negotiations with vendors and aircraft lessors, and is evaluating its fleet size, as it tries to shrink itself to find more stable footing, Davis said. “These evaluations will inevitably affect the size of our teams as we become a more efficient airline,” Davis wrote in his note to employees. “Unfortunately, these are the tough calls we must make to emerge stronger. We know this adds uncertainty, and we are committed to keeping you as these decisions are made.”
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Spirit also told CNBC, “We have engaged our labor unions to discuss the impacts of the network and fleet adjustments on our Team Members, and we will share more as these discussions progress.”
Spirit has already announced furloughs and demotions of hundreds of pilots. Some flight attendants have already taken voluntary unpaid leaves of absence.
“Although management has not yet indicated they will seek to make changes to our [collective bargaining agreement], our bankruptcy attorneys working alongside our AFA legal department are prepared for any next steps management may take,” the Association of Flight Attendants-CWA, the union representing Spirit’s flight attendants, told staff on Wednesday. “Again, 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.”
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Spirit airlines with its bright yellow planes, is known for its low costs as well as its bare-bones service. Over the years, the company faced competition from larger airlines like American and United, which also rolled out basic fares, while providing more perks on board. Another airline company, JetBlue also tried to take over Spirit, however, the acquisition did not come through. The airline filed for bankruptcy in August, shortly after emerging from a previous Chapter 11 reorganization in March.
A Spirit Airlines flight recently received repeated warnings from air traffic controllers to “pay attention” and “turn away” after it came too close to President Donald Trump’s aircraft as he flew to the United Kingdom for a state visit. While the planes were never at a distance that the Federal Aviation Administration (FAA) would classify as unsafe, it was close enough to alarm officials.