Spirit Airlines to cut 200 jobs to reduce costs
Ultra-low-cost carrier Spirit Airlines has announced plans to cut 200 jobs in an effort to reduce costs after filing for bankruptcy protection.
The decision comes after the airline confirmed that it had entered a prearranged Chapter 11 process in the US Bankruptcy Court for the Southern District of New York.
“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,” a Spirit Airlines spokesperson told CNN. “After reviewing our organizational structure, we have made the difficult decision to eliminate approximately 200 positions from various departments across the airline.”
The spokesperson clarified that these job cuts are meant to save costs and are separate from the Chapter 11 filing.
“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,” the spokesperson told CNN.
Spirit’s bondholders have supported a restructuring agreement that aims to secure the airline’s future.
As part of the Chapter 11 process, bondholders will provide a $350 million equity investment and $300 million in debtor in possession (DIP) financing.
Spirit assured customers that they can “continue to book and fly without interruption and can use all tickets, credits and loyalty points as normal” and that employees’ wages will not be impacted.
The airline has been suffering from ongoing maintenance issues surrounding its Pratt & Whitney geared turbofan engines, plus its proposed merger with JetBlue in 2024 that fell through at the final hurdle.
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