Spirit Airlines to Cut Jobs, Sell Planes in Response to Financial Challenges

Spirit Airlines has announced plans to sell multiple aircraft and lay off workers as the airline looks to raise cash amid ongoing financial struggles. As reported by Reuters.

According to a regulatory filing on Thursday, Spirit has identified around $80 million in cost-cutting measures set to begin early next year. The primary focus of these cuts will be a “reduction in workforce,” though the airline did not specify how many employees will be affected or which positions might be targeted. A spokesperson for Spirit declined to provide further details.

The past few years have been challenging for Spirit Airlines. Despite a rebound in travel after the COVID-19 pandemic, the airline has struggled to return to profitability, largely due to rising operational costs and increased competition.

Rival carriers have attracted some of Spirit’s budget-conscious customers by offering their own low-cost, no-frills ticket options. Since 2020, Spirit has faced continuous financial losses, totaling over $2.5 billion. The airline is also dealing with significant debt, with more than $1 billion in upcoming payments.

The recent filing indicates that Spirit expects its fourth-quarter capacity to drop by 20% compared to last year. The company also forecasts a mid-teen reduction in capacity for 2025, reflecting the recent aircraft sale and earlier adjustments made due to ongoing issues with the availability of Pratt & Whitney GTF engines.