Spirit Airlines CEO Dave Davis announced on Wednesday (September 17th) that the well-known American low-cost airline will further reduce its workforce and significantly cut flights in November.
Davis stated that the company is adjusting its route network, planning the flight schedule for November, and intends to reduce flights by 25% in the coming year, focusing on operating the strongest routes. Additionally, Spirit Airlines is in discussion with suppliers and aircraft lessors, evaluating fleet size.
The outcomes of these evaluations will impact employee numbers, aiming to downsize the company and reduce costs, seeking a more stable and efficient operating model. Despite bringing about uncertainty, Davis promised to continue communicating with employees throughout the decision-making process.
Davis mentioned that the company plans to meet with airline union leaders in the coming weeks.
In response to media inquiries about the number of employees affected by the announcement, Spirit Airlines stated, “We have discussed with the union, assessed the impact of route and fleet adjustments on employees, and as discussions progress, we will provide more information.”
At the end of August this year, due to financial constraints, Spirit Airlines filed for bankruptcy for the second time in less than a year. The airline has arranged for hundreds of pilots to take unpaid leaves of absence or demotions, and some flight attendants have voluntarily applied for unpaid leave.
In early September, Spirit Airlines announced flight reductions at 11 destinations, with the planned 12th destination being canceled. At the same time, United Airlines, Frontier Airlines, and JetBlue Airways have introduced new flights in an attempt to attract Spirit Airlines passengers.
The Association of Flight Attendants-CWA (AFA) stated on Wednesday that the challenges brought by Spirit Airlines’ bankruptcy this time are more severe than the previous one. While the company’s management has not yet proposed modifying the collective bargaining agreement, the union has been working with bankruptcy lawyers to uphold the rights of flight attendants.
Spirit Airlines has long been profitable through high-density seating configurations, fewer additional services, and low operating costs.
Since emerging from bankruptcy protection in March without major reforms, the company has only converted about $800 million in debt to equity, hence financial pressures persist, and the issues of “high costs” and “low domestic travel demand” remain unresolved.
From mid-March to the end of June after emerging from bankruptcy protection, Spirit Airlines has incurred losses of nearly $257 million.