Spirit Airlines is set to furlough more pilots with around 330 furloughs and 120 demotions expected. The latest measure was announced in a statement by the Air Line Pilots Association union who represent Spirit’s flight crews.
News of the latest round of furloughs comes in the wake of a recent bulk sale of 23 older A320 single-aisle aircraft to boost the airline’s liquidity. The carrier is facing mounting losses with a recent net loss of $159 million in Q2 2024. Further losses are anticipated in the airline’s third quarter financial report.
Last month, the airline announced that it would temporarily furlough 186 pilots. The latest round of 330 new furloughs and the demotion of 120 captains is now expected by 31 January 2025.
In a statement made to Reuters, a Spirit Airlines spokesperson explained the measures as part of its broader financial plan. We are implementing a series of cost saving initiatives throughout our business. This includes a reduction in workforce, as part of our comprehensive plan to return to profitability. The airline’s struggles stem from a combination of factors, including rising operational costs, increased competition, and a failed merger attempt. 
Spirit Airlines’ business model was built on a foundation of ultra-low fares, ancillary revenue, and operational efficiency. However, this model has come under increasing pressure in recent years. Rising fuel costs, labor expenses, and airport fees have eroded the airline’s profitability. Spirit was particularly impacted by Pratt & Whitney engine issues. The airline still has several of its A320neo and A321neo fleet grounded due to the protracted engine problems
Additionally, the pandemic dealt a significant blow to the airline industry. Spirit Airlines has not seen its financial bottom line in the black since 2018. Spirit Airlines has faced growing competition from other ULCCs, such as Frontier Airlines and Allegiant Air, as well as traditional carriers that have introduced low-cost options. This increased competition served to put further pressure on Spirit’s margins.
Spirit’s attempt to merge with JetBlue Airways was blocked by the Department of Justice, which argued that the deal would reduce competition and harm consumers. The failed merger left Spirit in a weakened position, with its stock price plummeting and its financial outlook uncertain. 
Spirit Airlines is now focused on cutting costs and improving its financial performance. The airline has announced plans to reduce its workforce, sell aircraft, and adjust its route network. However, it remains to be seen whether these measures will be sufficient to stabilize the airline’s finances and ensure its long-term viability.
