Spirit Airlines is slashing a quarter of its flights this fall as the bankrupt budget carrier scrambles to cut costs and keep flying.
CEO Dave Davis told employees in a memo Wednesday that the airline’s November schedule will be cut by 25 percent as it ‘optimizes’ its network to focus only on its strongest markets. There will also be job cuts.
The move marks Spirit’s second sweeping reduction this year — capacity was already down by a similar amount when it emerged from bankruptcy in March.
Further money problems caused Spirit to file for bankruptcy again in late August.
Shortly after, the carrier said it was axing flights to and from 12 cities, including Albuquerque, Birmingham, Boise, Chattanooga, Columbia, Portland, Salt Lake City, Oakland, San Diego, Sacramento and San Jose. Those routes will vanish in October.
But the latest round of cuts — which will hit in November — will be far bigger in scale. The airline has not yet said which routes will go, but the timing means passengers could face disruption during the busy holiday travel season.
In July Spirit furloughed 270 pilots and demoted another 140 as part of efforts to save money.
More cuts are expected, with Davis confirming talks with union leaders are planned in the coming weeks.
Spirit Airlines is reportedly planning to file for bankruptcy following its failed merger with JetBlue
Spirit CEO Dave Davis told employees in a memo Wednesday that the airline’s November schedule will be cut by 25 percent as it ‘optimizes’ its network to focus only on its strongest markets
Union officials warned staff to brace for a tougher fight this time. ‘This bankruptcy will be much more difficult than the last one and we must be prepared to act to protect our interests,’ the Association of Flight Attendants-CWA said.
The airline, known for its bright yellow planes and bare-bones fares, has been hammered by rising costs, falling demand and fierce competition from United, Frontier and JetBlue.
It has lost nearly $257 million since March and is now trying to shrink itself into survival.
Based in Florida and known for its bright yellow planes, Spirit firat filed for bankruptcy protection last November after years of losses, failed merger talks, and heavy debt.
It was the first major US airline to seek Chapter 11 since 2011. The airline emerged from bankruptcy in March after creditors approved its restructuring plan and wiped out all existing shares, hitting ordinary investors.
Ownership was handed to Spirit’s lenders, which include investment funds managed by firms such as Citadel Advisors.
Ongoing uncertainty tied to President Donald Trump’s tariffs and budget cuts has caused travelers to tighten their budgets and rethink plans.
Spirit recently rejected a proposed takeover by fellow budget airline Frontier, saying the proposed buyout offered less value for Spirit’s creditors than the bankruptcy restructuring.
Spirit executives saw the merger with JetBlue as a way to claw back a market share, but the Department of Justice argued that such a deal would violate anti-trust laws
Spirit has been struggling with losses and declining revenue since the pandemic. In fact, while it may have made profits some quarters, it has not turned an annual profit since even before the pandemic.
Frontier Airlines and Spirit Airlines first planned to merge in 2022, then but JetBlue Airways swooped in with a higher bid. That won over Spirit’s shareholders.
Spirit executives saw the merger with JetBlue as a way to claw back a market share, but the Department of Justice argued that such a deal would violate anti-trust laws, and a judge agreed.
As a result, JetBlue pulled out of a merger agreement.
Spirit was in talks with Frontier again in October as it hoped to revive merger discussions.
Meanwhile, in December Silver Airways also filed for Chapter 11. The airline flies to vacation hotspots across Florida and the Caribbean – prompting fears for the fate of trips planned by Americans looking for winter sun.
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