Spirit Airlines is making changes to its business structure that will reduce both its fleet size and workforce. These developments are part of the airline’s cash-saving efforts, and it has identified several ways to save money totaling $80 million, according to the latest reports.

Cost-cutting measures

The past few months have been quite rough for Spirit Airlines
. As the carrier struggles to generate profits, it continues to make changes to its fleet, network, and workforce. Spirit is scaling back on its operations and has identified various cost-saving measures that will help it to preserve as much as $80 million, according to The Wall Street Journal. The airline said,

“These cost reductions are driven primarily by a reduction in workforce commensurate with the company’s expected flight volume.”

Spirit Airlines and JetBlue planes

Photo: Leonard Zhukovsky | Shutterstock

News of a workforce reduction at Spirit is not new. Earlier this year, the carrier announced that it would furlough as many as 260 pilots. However, the eventual number was less than that. It remains to be seen which departments within the organization would be most affected.

Selling aircraft

Spirit Airlines is also optimizing its fleet and overall network by reducing the number of aircraft. GA Telesis, an aerospace company, has made a formal announcement saying that it has signed a purchase agreement for 23 used Airbus A320ceo and A321ceo aircraft from Spirit Airlines.

These planes were built between 2014 and 2019, with GA Telesis highlighting that this would be the “company’s largest-ever acquisition of non-leased aircraft of similar vintages.” Marc Cho, President of GA Telesis LIFT Group, commented,

“We are thrilled to announce this significant acquisition, which adds a large number of highly sought-after Airbus A320ceo and A321ceo aircraft to our portfolio. The A320ceo family of aircraft is renowned for its efficiency, performance, and reliability, making it an attractive option for airlines across the world. We are confident these aircraft will provide significant value to our customers as they continue their operations.”

A fleet of Spirit Airlines Airbus aircraft

Photo: Leonard Zhukovsky | Shutterstock

Spirit has been gradually making changes to its network, cutting several routes in the last few months. In September, it announced the removal of more than 30 routes in the months of October, November, and December. All of these flights will be gone by the end of this year, although the airline might reinstate some of them as seasonal services in 2025.

Related

Ouch: Spirit Airlines Suspends More Than 30 Routes

Boston will be hit hardest, followed by Dallas/Fort Worth, Charleston, and Las Vegas.

Recent headwinds

Spirit Airlines has seen several developments lately. There were reports recently that the company is

contemplating filing for bankruptcy
sometime in the future, plunging its shares by around 30%. Spirit has failed to register a profitable quarter in a long time, and it reported a net loss of around $158 million in Q2 this year.

The airline’s hopes of a recovery were squashed earlier this year after JetBlue decided to withdraw from its acquisition deal following hurdles from the government. However, there have been fresh reports of Frontier once again considering an acquisition deal with Spirit.

Spirit Airlines A320

Photo: The Global Guy | Shutterstock

The airline has said that intense competition in the US market has affected its performance. A failed deal with JetBlue, along with aircraft groundings due to engine issues, further exacerbated its woes. Spirit is hoping that the current cost-cutting measures will bring some stability to its operations.

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