Discount carrier Spirit Airlines filed for Chapter 11 bankruptcy in a New York City federal court Monday morning. Corporate executives, union officials and the media rushed to ensure customers and workers that the bankruptcy filing would not affect normal operations. The move, however, is the prelude to a savage cost-cutting campaign, not only at Spirit but throughout the global airline industry.

Spirit flight attendants protest at Ft. Lauderdale airport in May 2022 [Photo: AFA-CWA]

Spirit is the first major US airline to file for Chapter 11 since American Airlines in 2011. It was one of the recipients of $25 billion in federal loans from the CARES Act following the collapse of air travel in the first year of the pandemic. Like other discount airlines, it has been hit by rising fuel prices and the competition of bigger carriers that have also lowered ticket prices to gain customers.

In addition, Spirit has been forced to ground 40 Airbus A320neo jets—nearly 20 percent of the airline’s entire fleet—due to cracks in their Pratt & Whitney engines. The biggest US budget airline has lost more than $2.5 billion since the beginning of 2020.

According to court filings, Spirit is seeking to reduce its $1.6 billion debt load by $795 million under its bankruptcy restructuring plan. The company’s stock will be delisted from the New York Stock Exchange and its shares canceled, the Wall Street Journal reported, but company executives claim vendors and airline lessors would be paid on time.

It will be an entirely a different thing for the Miramar, Florida-based airline’s approximately 13,000 employees. In a sign of things to come, Spirit furloughed 260 pilots and sold off aircraft in July 2023, even as it boosted the salaries of its top executives, including CEO Ted Christie who pocketed $6.6 million that year.

Airline workers went to social media to discuss the impending cuts. On a Reddit group, one said, “Rough seas ahead for those pilots over there.” Another replied, “And hundreds of flight attendants too. I watch a guy on YouTube who has worked for them for 8 years and I feel terrible for him. He loves his company and if he has to start over with a new one he’s going to lose significant money for a few years, as will pilots.”

The bankruptcy is part of an escalating onslaught on airline employees. Alitalia, the former Italian national carrier, is preparing to fire its remaining 2,059 employees by January as it conducts merger talks with Lufthansa. The flagship German airliner, in turn, announced last week that it will lay off 400 workers, or 20 percent of its administrative workforce, and anticipates a loss of 800 million euros ($843.92 million) by next year. After sharp losses earlier this year, Lufthansa and Air France-KLM announced cost-cutting measures blamed on high labor costs following strikes at both airlines.

In addition, aircraft manufacturers Boeing and Airbus are laying off thousands of workers.

A little over half of Spirit’s workers are unionized. This includes 2,326 pilots who are members of the Air Line Pilots Association (ALPA); 5,600 flight attendants, who are members of the Association of Flight Attendants-Communications Workers of America (AFA-CWA); and around 500 aircraft maintenance technicians and maintenance controllers who joined the Airline Mechanics Fraternal Association (AMFA) craft union in 2022.

Leave a Reply

Your email address will not be published. Required fields are marked *