Spirit Airlines Cuts Jobs to Save $80 Million and Survive Bankruptcy

Spirit Airlines is cutting approximately 200 jobs as part of its ongoing efforts to reduce costs following its Chapter 11 bankruptcy filing in November. The job cuts, which affect non-union positions, are part of the airline’s broader strategy to achieve $80 million in cost savings, according to CNBC. 

At the time of its bankruptcy filing, Spirit employed around 13,000 workers, with about 84% of them represented by unions. The recent workforce reductions are aimed at streamlining operations and improving financial stability. Spirit has already taken additional steps to reduce expenses, including furloughing hundreds of pilots and offering extended voluntary leaves of absence to flight attendants. The airline has also scaled back its route network and sold parts of its Airbus jetliner fleet to raise funds.

CEO Ted Christie addressed the difficult decision in an internal memo, acknowledging the impact on employees’ lives. He emphasized that the cuts are part of a broader effort to optimize the company and achieve greater efficiency in light of significant financial challenges.

Spirit’s struggles have been compounded by several factors, including the blockage of its planned merger with JetBlue by a federal court on antitrust grounds last year. The airline has also faced operational hurdles, such as a Pratt & Whitney engine recall and rising labor costs post-pandemic.

Despite these challenges, Spirit Airlines remains on track to exit bankruptcy within this quarter, according to Christie.