Latest news with #pilotfurloughs
Yahoo
29-07-2025
- Business
- Yahoo
Spirit Airlines to furlough 270 pilots and demote 140 more on downsized schedule
Spirit Airlines said on Monday that it will furlough about 270 pilots while demoting another 140, as the cash-strapped budget carrier looks to scale down its workforce to match a downsized schedule. The furloughs will go into effect on November 1, while designation downgrades for captains will take place on October 1, the company told Reuters in an emailed statement. 'We are taking necessary steps to ensure we operate as efficiently as possible as part of our efforts to return to profitability,' the airline said. The announcement, first reported by Bloomberg News, comes as Spirit tries to overhaul its business to move away from its no-frills image and rebrand as a premium airline. The Florida-based carrier had filed for bankruptcy protection last November, following years of losses, heavy debt, and failed merger attempts. It emerged from bankruptcy in March. 'Spirit continues to shrink, and with it, the value of pilot seniority and Spirit careers continues to erode,' said Captain Ryan Muller, chairman of the Spirit unit of the Air Line Pilots Association, adding that this marks the third round of pilot furloughs and downgrades since September 2024. The union said it is working on a third Furlough Mitigation Memorandum of Understanding to pursue voluntary options to reduce the scope of the furloughs and preserve pilot careers. Sign in to access your portfolio
Forbes
28-07-2025
- Business
- Forbes
Spirit Airlines Will Furlough 270 Pilots And Cut Flights This Fall
Spirit announced the third round of pilot furloughs since last September, as the ultra-low-cost-carrier struggles after six years of unprofitability. Spirit Airlines, which hasn't turned a profit since 2019, emerged from bankruptcy protection in ... More March and is trying to regain its financial footing. getty Beginning Nov. 1, budget carrier Spirit Airlines will furlough about 270 pilots and demote 140 more, Bloomberg first reported Monday. It is the third round of pilot furloughs and downgrades since last September, the Air Line Pilots Association (ALPA), the union representing Spirit's pilots, said in a statement. The airline emerged from bankruptcy protection in March after a four-month restructuring and years of losses, several failed mergers and other challenges. Last week, Spirit Airlines reported an adjusted net loss of $158 million for the second quarter. The company's second-quarter revenue was roughly $1.3 billion—an 11% decrease year-over-year. Spirit Aviation stock is down 50% since the start of the year. Spirit Airlines hasn't turned a profit since 2019. Last November, the budget carrier became the first major U.S. airline to file for Chapter 11 since American Airlines 13 years ago. The carrier's bankruptcy allowed for a period of financial restructuring and cost-reduction measures. 'We are taking necessary steps to ensure we operate as efficiently as possible as part of our efforts to return to profitability,' Spirit said in a statement provided to Forbes, adding that the furloughs will 'better align staffing with our flight schedule.' Spirit has drastically cut capacity, trimming flights by approximately 1 million seats in May and June of this year–a decrease of roughly 24% since last year. Frontier proposed a deal in 2022 but was outbid by JetBlue, whose hostile takeover attempt was blocked by a judge. Frontier made another offer in 2024, but Spirit rejected it this past February, saying it was less beneficial to shareholders than its own restructuring plan. Tangent Lagging consumer confidence is hitting airlines' bottom lines, especially when it comes to basic economy tickets—an indication that budget travelers have pulled back on air travel spending. On second-quarter earnings calls, executives of all the major U.S. airlines noted softer demand for domestic main cabin bookings. Delta Air Lines CEO Ed Bastian said demand softness was 'largely contained to main cabin.' United Airlines chief commercial officer Andrew Nocella noted premium cabin revenues were up 6% year-over-year in Q2, 'while the economy cabin was negative.' And American Airlines CEO Robert Isom reported a 6% drop in domestic unit revenue year over year, noting 'the softness in the main cabin persisted throughout the second quarter.' For its part, Spirit Airlines has taken pains to win over customers with more premium options, like extra legroom, which have performed better than the no-frills coach tickets Spirit has always been famous for. Spirit Airlines Files For Bankruptcy, Aims To Exit Chapter 11 In Early 2025 (Forbes)
