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Spirit Airlines Slashes Jobs As It Charts Path Out Of Bankruptcy

Spirit Airlines is laying off about 200 employees as the company tries to survive amid bankruptcy proceedings.

A Spirit Airlines Airbus A321-200 on its final approach to Newark Liberty International Airport.

A Spirit Airlines Airbus A321-200 on its final approach to Newark Liberty International Airport.

Photo Credit: Wikimedia Commons - Adam Moreira

The budget carrier will eliminate the positions across various departments, a company spokesperson told Daily Voice on Thursday, Jan. 16. The move came as Spirit looks to emerge from Chapter 11 bankruptcy, which it filed for in November 2024.

The layoffs, which follow recent pilot furloughs, aim to align the airline's staffing with its current fleet size and level of flying while achieving $80 million in annual cost reductions.

"These decisions are never made lightly, and we are committed to treating all impacted team members with the utmost care and respect," the spokesperson said.

Spirit is trying a broader strategy to stabilize its financial standing. The airline received court approval for "first day" relief in its bankruptcy proceedings, helping the company fully pay its employees and vendors, along with allowing passengers to book flights and use loyalty rewards as usual.

President and CEO Ted Christie said he was optimistic about the restructuring process. 

"We are pleased with the court's decision to grant all of this important relief, which affirms our ability to continue operating seamlessly during our streamlined restructuring process," Christie said in a November 2024 statement. "I want to thank our guests, team members and business partners for their continued support as we position Spirit for long-term success. We look forward to emerging as a stronger company and continuing to execute on our strategic initiatives to transform our guest experience."

Spirit entered Chapter 11 with a restructuring support agreement designed to reduce $795 million in funded debt and secure $350 million in equity capital. The company had 13,167 employees at the end of 2023, according to Stock Analysis.

The airline headquartered in Dania Beach, Florida, expects to exit bankruptcy in the first quarter of 2025.

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