Spirit Airlines cuts 200 jobs in bankruptcy cost-cutting scramble

Spirit Airlines is cutting about 200 jobs across the company as the struggling budget carrier seeks to reduce costs after it filed for Chapter 11 bankruptcy protection in November.

“These decisions were not made lightly, as we know they impact professional and personal lives,” CEO Ted Christie wrote in a staff memo, which was seen by CNBC. “As you all know, we’re facing significant challenges with our business, which is why we’ve been focused on taking actions to optimize our organization and create more efficiencies. The bottom line is, we need to run a smaller airline and get back on better financial footing.”

Spirit had about 13,000 employees at the time of its bankruptcy filing, about 84% of them represented by unions, according to a court filing. The job cuts are to nonunion positions and are part of the company’s plan to cut $80 million in costs.

“With all of those actions, coupled with this week’s reductions to our workforce, we’ve now reached the $80 million cost-savings target,” Christie wrote.

The Dania Beach, Florida-based airline had previously furloughed hundreds of pilots and offered flight attendants extended voluntary leaves of absence to try to reduce costs. It has also shrunk its network and reached deals to sell some of its Airbus jetliner fleet to raise cash.

Spirit has struggled since its planned merger with JetBlue was blocked by a federal court on antitrust grounds a year ago, adding to struggles that also included a Pratt & Whitney engine recall and a surge in labor costs after the pandemic.

Christie said the carrier is still on track to exit bankruptcy this quarter.