MIAMI — Spirit Airlines will reduce flight capacity by 25% starting in November as part of a restructuring effort following its second bankruptcy in less than a year. CEO Dave Davis announced the cuts in a memo to employees, signaling further layoffs and a strategic shift toward the carrier’s most profitable markets.
The budget airline filed for Chapter 11 bankruptcy in August, just months after emerging from its first filing in March, which had reduced its debt by approximately $800 million. Davis stated the company must “optimize our network” and acknowledged that the changes “will inevitably affect the size of our teams.”
Spirit has already announced plans to furlough 270 pilots and downgrade 140 others to first officer roles. Earlier this year, the airline eliminated 200 jobs and reported a quarterly net loss of $245.83 million, with operating revenues down $261 million year-over-year.
The company has also been temporarily delisted from the New York Stock Exchange. In a recent Securities and Exchange Commission filing, Spirit warned of “substantial doubt” about its ability to continue operations over the next 12 months.
United Airlines CEO Scott Kirby confirmed last week that United will not pursue Spirit’s fleet assets, further narrowing Spirit’s options for recovery. The airline has indicated it will scale back its presence in several markets and reduce its fleet size as part of its turnaround strategy.
