Spirit Airlines to Cut Around 200 Jobs Across ‘Various Departments’

Spirit Airlines is cutting approximately 200 jobs in a major efficiency drive. Ted Christie, the carrier’s chief executive, informed employees on Wednesday night via an internal memo, according to a Wall Street Journal report. 

In a statement to Skift, the airline confirmed the job losses will affect “various departments across the airline.”

“We are executing on plans to rightsize our organization to align with our current fleet size and level of flying and ultimately optimize our airline. After reviewing our organizational structure, we have made the difficult decision to eliminate approximately 200 positions,” it continued.

The reduction in staff is in addition to an earlier furlough of pilots. Some flight attendants at Spirit have also been offered unpaid voluntary leave.

Spirit Airlines filed for Chapter 11 bankruptcy in November. At the time, the company said the restructuring was expected to reduce its debt and provide “more financial flexibility.”

The pre-packaged nature of the bankruptcy means flights have largely continued as normal and most passengers are unaffected. However, the airline has been cutting unprofitable routes and making other efficiencies to bolster liquidity. 

Spirit’s Turnaround Efforts

“While we will continue to identify additional operational efficiencies. These efforts, along with our recent Pilot furloughs, achieve our previously announced target of $80 million of annualized cost reductions. These decisions are never made lightly, and we are committed to treating all impacted Team Members with the utmost care and respect,” the airline added.

Spirit executives are engaged in a turnaround plan called “Project Bravo.” It breaks with the traditional ultra low-cost model and proposes initiatives such as free in-flight Wi-Fi and codesharing flights with other airlines.

In a court filing in November, Spirit CFO Fred Cromer acknowledged the sector had significantly changed since the pandemic.

“The airline industry (particularly in the United States) is contending with shifting consumer demand and operational headwinds, such that it is unrecognizable from what it was pre-pandemic,” said Cromer.

A Return to Spirit’s Heyday?

Spirit was once one of the most profitable carriers in the industry, reporting operating margins as high as 20%. However, it hasn’t posted a full-year profit since 2019. 

A lack of demand for its product, overcapacity in the domestic market, and Pratt & Whitney engine issues have led the budget airline to report losses. The company was also battling significant debt obligations. 

Spirit is the first major U.S. airline to file for bankruptcy since 2011, but it isn’t alone in facing financial pressures. Earlier this week, Southwest Airlines confirmed it is pausing corporate hiring and most summer internships to cut costs and improve margins.

At Southwest’s investor day in September, executives unveiled a turnaround plan that included premium seating, airline partnerships, red-eye flights, and capacity cuts in unprofitable areas.

Additional reporting by Meghna Maharishi

Watch Southwest CEO, Bob Jordan, at the Skift Aviation Forum 2024: