Spirit Airlines to Cut 200 Jobs Amid Bankruptcy Efforts
Spirit Airlines announced plans to cut 200 jobs in an effort to reduce costs and restructure its operations. The airline filed for Chapter 11 bankruptcy protection in November, citing challenges with debt, competition from other low-cost carriers, and failed merger attempts with other airlines.
The job cuts are separate from the bankruptcy filing and are aimed at saving costs. Spirit Airlines has approximately 13,000 employees and 8,000 independent contractors and temporary workers, with the most recent cuts affecting non-union workers.
The airline’s spokesperson stated that the company is “executing on plans to rightsize our organization to align with our current fleet size and level of flying and ultimately optimize our airline.” The job cuts are part of a broader effort to reduce costs and achieve operational efficiencies, with the airline expecting to emerge from bankruptcy in the first quarter of 2025.
In recent months, Spirit Airlines has taken several steps to reduce costs, including a deal with Airbus to delay aircraft deliveries and the furlough of 260 pilots. The airline has also identified additional operational efficiencies that will achieve an annualized cost reduction of $80 million.
The airline’s bankruptcy filing allows it to continue operating while restructuring its debt. A case filed under Chapter 11 bankruptcy protection is often referred to as a “reorganization” bankruptcy, which allows a company to continue operating while reorganizing its debt.