Spirit Airlines Will Furlough 270 Pilots And Cut Flights This Fall
Spirit Airlines, which hasn't turned a profit since 2019, emerged from bankruptcy protection in ... More March and is trying to regain its financial footing. getty
Beginning Nov. 1, budget carrier Spirit Airlines will furlough about 270 pilots and demote 140 more, Bloomberg first reported Monday.
It is the third round of pilot furloughs and downgrades since last September, the Air Line Pilots Association (ALPA), the union representing Spirit's pilots, said in a statement.
The airline emerged from bankruptcy protection in March after a four-month restructuring and years of losses, several failed mergers and other challenges.
Last week, Spirit Airlines reported an adjusted net loss of $158 million for the second quarter.
The company's second-quarter revenue was roughly $1.3 billion—an 11% decrease year-over-year.
Spirit Aviation stock is down 50% since the start of the year.
Spirit Airlines hasn't turned a profit since 2019. Last November, the budget carrier became the first major U.S. airline to file for Chapter 11 since American Airlines 13 years ago. The carrier's bankruptcy allowed for a period of financial restructuring and cost-reduction measures. 'We are taking necessary steps to ensure we operate as efficiently as possible as part of our efforts to return to profitability,' Spirit said in a statement provided to Forbes, adding that the furloughs will 'better align staffing with our flight schedule.' Spirit has drastically cut capacity, trimming flights by approximately 1 million seats in May and June of this year–a decrease of roughly 24% since last year.
Frontier proposed a deal in 2022 but was outbid by JetBlue, whose hostile takeover attempt was blocked by a judge. Frontier made another offer in 2024, but Spirit rejected it this past February, saying it was less beneficial to shareholders than its own restructuring plan. Tangent
Lagging consumer confidence is hitting airlines' bottom lines, especially when it comes to basic economy tickets—an indication that budget travelers have pulled back on air travel spending. On second-quarter earnings calls, executives of all the major U.S. airlines noted softer demand for domestic main cabin bookings. Delta Air Lines CEO Ed Bastian said demand softness was 'largely contained to main cabin.' United Airlines chief commercial officer Andrew Nocella noted premium cabin revenues were up 6% year-over-year in Q2, 'while the economy cabin was negative.' And American Airlines CEO Robert Isom reported a 6% drop in domestic unit revenue year over year, noting 'the softness in the main cabin persisted throughout the second quarter.' For its part, Spirit Airlines has taken pains to win over customers with more premium options, like extra legroom, which have performed better than the no-frills coach tickets Spirit has always been famous for.
Spirit Airlines Files For Bankruptcy, Aims To Exit Chapter 11 In Early 2025 (Forbes)
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