Spirit Airlines will furlough about 330 pilots on Jan. 31, 2025, a spokesperson told Reuters, as part of efforts to cut costs and shore up company finances.
This is on top of the 186 pilots who were furloughed last month.
The ultra-low-cost carrier has been losing money despite strong travel demand. It has failed to report a profit in the last five out of six quarters, raising doubts about its ability to manage looming debt maturities.
“We are implementing a series of cost savings initiatives throughout our business, including a reduction in workforce, as part of our comprehensive plan to return to profitability,” Spirit’s spokesperson said.
Ryan Muller, the head of Spirit’s pilot union, said the airline’s plan to operate a smaller fleet has raised concerns about job security for pilots.
“While the company may emphasize numbers, we understand that each figure represents a dedicated pilot, their career and their family’s future,” said Muller, adding the pilot union was trying to mitigate the furloughs.
The plans included eliminating 32 routes through the end of the year. Spirit’s San Diego to Salt Lake City was part of the slash, according to airlinegeeks.com.
Spirit plans to cut costs by $80 million next year, primarily through a reduction in its workforce.
It is also selling 23 older Airbus aircraft for $519 million. The sale proceeds are estimated to provide $225 million of liquidity next year.
A federal judge in January blocked JetBlue’s planned $3.8 billion acquisition of Spirit, siding with the U.S. Department of Justice, which argued that the deal was anticompetitive and harmful to flyers.
Shares of Spirit Airlines, which have slumped about 84% this year, surged early last week after the carrier reached a deal to extend a $1.1 billion debt refinancing deadline until Dec. 23.
(with reporting from Reuters by Rajesh Kumar Singh; editing by Chris Reese and Jamie Freed)