Spirit Airlines slashes flights, warns of more job cuts amid second bankruptcy

Spirit Airlines CEO Dave Davis warned staff that the airline is cutting a quarter of its flight schedule in November as it restructures its business in its second bankruptcy in less than a year. Davis told employees in a Wednesday memo, reviewed by FOX Business, that the carrier will reduce its capacity by 25% year over year in November to "optimize our network to focus on our strongest markets." Davis, who has led the company since April shortly after it emerged from its first bankruptcy, said that "November’s schedule reflects significant adjustments, coupled with ongoing cost-savings efforts amid the restructuring." SPIRIT AIRLINES WARNS IT MAY NOT SURVIVE ANOTHER YEARThe chief executive said the company is still evaluating the size of its fleet to ensure it has the right number of aircraft for its future network and that more job cuts may be on the horizon. "Efforts to reduce costs with our suppliers and vendors continue, and we’ll be meeting with our labor groups and leaders in all areas of our airline to find additional ways to become a more efficient competitor in the industry," Davis wrote, adding that these evaluations will affect the size of teams as it tries to be a more efficient airline. The chief executive’s warning comes after the carrier filed for bankruptcy at the end of August, following an earlier failed reorganization attempt this year. Burdened with debt, Spirit first sought Chapter 11 protection in November 2024 after unsuccessful merger talks with JetBlue and Frontier. It emerged from its first bankruptcy in March, only to return to bankruptcy just five months later.Davis, wrote in an open letter to customers in August that the Chapter 11 restructuring process would "ensure the long-term success of our company so we can continue to serve our Guests well into the future."SPIRIT AIRLINES FILES FOR SECOND BANKRUPTCY IN UNDER A YEAR AS LOW-COST CARRIER CONTINUES TO STRUGGLEHowever, just weeks before filing, the airline already warned that it may not make it through another year, citing concerns over its ability to raise enough cash.   The carrier said in a Securities and Exchange Commission (SEC) filing in early August that it continues to be affected by "adverse market conditions," including continued weak demand for domestic leisure travel in the second quarter of 2025. The persisting challenges created a "challenging pricing environment," the airline said. The carrier also projected that it will continue to "experience challenges and uncertainties" in its operations for the remainder of fiscal 2025. JETBLUE, SPIRIT AGREE TO TERMINATE MERGER OVER REGULATORY ISSUESAt the time, the airline said it was taking certain measures to address these challenges, such as implementing a Premium Economy travel option and selling some of its spare engines and then leasing them back to get quick cash. It also furloughed pilots last month to recoup some costs.GET FOX BUSINESS ON THE GO BY CLICKING HEREStill, it wasn't making money fast enough to meet the rules set by its lenders and credit card processor, according to the filing. Weiter zum vollständigen Artikel bei FOX Business Weiter zum vollständigen Artikel bei FOX Business