BREAKING: Spirit Airlines has just reached critical agreements with its pilots and flight attendants to implement pay cuts as part of its ongoing Chapter 11 bankruptcy restructuring. This decision comes after the airline reported a staggering loss of over $800 million earlier this year and is crucial for its financial survival.
In a press release today, Spirit confirmed that it has achieved agreements in principle with the Air Line Pilots Association (ALPA) and the Association of Flight Attendants (AFA). These salary reductions aim to position the airline for a more secure future as it navigates through Chapter 11, a process that allows companies to reorganize while maintaining operations.
Spirit’s President and CEO, Dave Davis, emphasized,
“These agreements reflect the shared commitment of our Team Members and principal labor unions in securing a successful future for Spirit.”
The airline’s leadership is also set to reduce their salaries by at least the same percentage as the pilots’ cuts, showcasing a unified front in this challenging time.
This restructuring effort includes significant operational changes. Spirit plans to cease operations at five airports, including Phoenix (PHX), Milwaukee (MKE), and St. Louis (STL), effective January 8, 2026. The airline will follow this by exiting Rochester (ROC) and Bucaramanga (BGA) on January 13, 2026. This strategic withdrawal affects 15 routes and aims to streamline operations amid financial strain.
The airline has also cut approximately 150 salaried positions and has furloughed several pilots and flight attendants. These measures are part of a broader strategy to reduce costs and improve efficiency as Spirit works to stabilize its finances.
Spirit Airlines entered Chapter 11 bankruptcy for the second time in a few months, highlighting the ongoing turbulence in the aviation sector. The airline has signed deals with AerCap to return underutilized aircraft and has reduced orders for new planes to free up capital.
As the situation develops, the impact on employees and travelers remains significant. Spirit’s commitment to reducing operational costs is essential for regaining financial stability, but it raises questions about job security for its crew members and the airline’s future service capabilities.
In the coming weeks, Spirit will finalize its agreements and submit them for ratification. The success of these measures will be crucial for the airline’s upcoming draw under its debtor-in-possession financing, which is essential for maintaining liquidity during this restructuring phase.
Stay tuned for more updates as Spirit Airlines takes these decisive steps towards recovery. The aviation industry is watching closely to see if the airline can successfully navigate these turbulent times and emerge stronger.
