Spirit Airlines Axes 200 Jobs in Bid To Stay Afloat Amid Financial Woes

To reduce costs, roughly 200 employees of Spirit Airlines are being let go. On Wednesday, the airline told workers across several departments that they were no longer needed.

The layoffs follow failed merger talks with Frontier Airlines and a bankruptcy filing by Spirit late last year. The Chapter 11 protection was intended to give Spirit some financial breathing room while it worked on restructuring, which also included cutting routes and increasing efficiency.

“We are executing on plans to rightsize our organization to align with our current fleet size and level of flying and ultimately optimize our airline,” Spirit wrote, per CNN. “After reviewing our organizational structure, we have made the difficult decision to eliminate approximately 200 positions from various departments across the airline.”

In September 2024, Spirit asked 186 pilots to take a furlough while it solved some jet engine issues that grounded some of the fleet. Many flight attendants volunteered to take some unpaid time off as well.

A Failing Turnaround for Spirit Airlines

Over the past few years, Spirit Airlines has been working hard to avoid a financial crash. Between 2022 and 2024, the company made two attempts to merge with rival budget airlines, both of which ultimately failed.

Meanwhile, Spirit made changes in an effort to lure passengers back. Flight change and cancellation fees were eliminated. Ticket upgrades were offered, including options for a “big front seat” as well as priority check-in and boarding. A “go comfy” perk left an empty middle-row seat, meaning a passenger did not have to deal with someone sitting too close.

“We listened to our guests and are excited to deliver what they want: choices for an elevated experience that are affordable and provide unparalleled value,” said Spirit Airlines CEO Ted Christie last year.

At one time, Spirit was very profitable, with operating margins hovering around 20%. Yet, various problems, such as weak demand, overcapacity, and engine troubles, pushed the airline into negative territory. Spirit’s mounting debt also complicated financial matters.

Spirit’s most recent announcement of layoffs and its bankruptcy filing last year put the airline’s future in question. Unfortunately, the changes Spirit executives implemented might be too little, too late.