By admin [ad_1]
Shortly before it filed for bankruptcy in November 2024, Spirit Airlines (SAVE) announced that it would put 330 of its pilots on furlough.
It had already furloughed 130 pilots a month earlier, while also downgrading 120 of its captains to first officers.
At the time it filed for Chapter 11 bankruptcy protection, Spirit had accumulated over $3.8 billion in debt as earlier plans for acquisitions with JetBlue (JBLU) and Frontier Airways (FRON) had fallen through.
While Spirit emerged from bankruptcy by the spring by restructuring $795 million in funded debt and securing $350 million in fresh equity from investors, questions remain about how the carrier will find a profitable way forward.
Don’t miss the move: Subscribe to TheStreet’s free daily newsletter
Spirit Airlines ‘taking necessary steps to ensure we operate as efficiently as possible’
As first reported by Bloomberg, Spirit Airlines confirmed that it will make a third round of pilot furloughs by placing 270 pilots on leave by Nov. 1. An additional 140 pilots will be downgraded from captain to first officer by Oct. 1.
Spirit confirmed the cuts as being necessary “to better align staffing with our flight schedule.” For the second quarter of 2025, Spirit reported revenue of $1.3 billion, which is a 11% drop from the previous year. The adjusted net loss was $158 million.
“We are taking necessary steps to ensure we operate as efficiently as possible as part of our efforts to return to profitability,” the airline said in a further statement. The last time the airline reported a profitable quarter was in 2019, and it has faced increased pressure to do so post-bankruptcy.
Related: Spirit Airlines to launch its shortest flight yet
After emerging from bankruptcy, Spirit made additional changes like scrapping its base fare structure and replacing it with tiers in which customers pay for more perks. The four classes begin with a basic “Go” fare without a single carry-on, while the “Go Big” fare includes a carry-on item and checked bag, an assigned seat with extra legroom at the front of the plane, priority boarding, and extras such as snacks and free in-flight Wi-Fi.
In announcing the pilot furloughs, Spirit said that it is also preparing to restructure certain routes — namely, cut flights — to scrap ones that are not bringing in profit. The carrier has already cut approximately one million seats on different routes between May and June 2025.
Image source: TheStreet Illustration
‘Spirit continues to shrink’: Captain and union leader on new round of furloughs
The news predictably sent shockwaves through the employees affected as, after each round of previous cuts, Spirit had expressed hopes that no further ones would be made.
More on travel:
- United Airlines places big bet on new flights to trendy destination
- Government issues new travel advisory on popular beach destination
- Another country just issued a new visa requirement for visitors
“We know how hard this news hits, and there’s no dressing that up,” Ryan Muller, a captain who chairs the Spirit chapter of the ALPA pilot’s union, said in statement on behalf of the union’s members. “Spirit continues to shrink, and with it, the value of pilot seniority and Spirit careers continues to erode.”
In regard to the affected employees, Spirit issued an additional statement saying that it “recognize[s] the weight of this decision and are committed to treating all affected Team Members with compassion and respect during this process.”
Related: US government issues sudden warning about Thailand travel
[ad_2]