Spirit Airlines Cuts 200 Jobs Amid Bankruptcy Restructuring
Spirit Airlines has announced the elimination of 200 positions as part of its cost-cutting measures following its November Chapter 11 bankruptcy filing.
The airline attributed the bankruptcy to mounting debt, heightened competition among low-cost carriers, and the collapse of merger attempts with other airlines. A Spirit spokesperson explained that the job cuts were intended to align the organization with its current fleet size and operational levels.
“We are executing plans to rightsize our organization to optimize our airline,” the spokesperson stated. “This decision, though difficult, impacts approximately 200 roles across various departments.” The company clarified that the layoffs were independent of its bankruptcy filing.
Chapter 11 bankruptcy allows companies to continue operations while restructuring their financial obligations. Spirit expects to emerge from bankruptcy in the first quarter of 2025.
Earlier merger talks with Frontier Airlines in February 2022, which would have created the fifth-largest U.S. airline, failed after Spirit shareholders declined the deal. A competing bid from JetBlue was viewed as more lucrative, though Spirit management favoured the Frontier merger due to anticipated regulatory challenges with JetBlue. In March 2023, a federal court blocked JetBlue’s attempt to acquire Spirit on antitrust grounds, citing potential airfare increases.
Spirit, which employs nearly 13,000 staff and an additional 8,000 contractors, confirmed that the latest layoffs target non-union positions. In September, the airline had already furloughed 260 pilots as part of broader efforts to reduce expenses.
The airline also reached an agreement with Airbus in August to defer aircraft deliveries originally scheduled for 2025 and 2026. Spirit aims to achieve $80 million in annual cost savings through these and other operational adjustments.
