Spirit’s CEO says the airline will reduce flights, could cut jobs

Spirit Airlines The CEO Davis Davis put the staff on Wednesday for more job cuts and said the carrier planned to reduce his schedule in November to reduce costs for weeks after declaring his second bankruptcy in less than a year.

The airline is planning its November calendar and Davis told employees in a memo, which was examined by CNBC, that they will see a 25% drop in terms of 2024 “because we optimize our network to focus on our strongest markets”.

The carrier’s ability was down compared to the end of the bankruptcy from March to the end of June, and the new cuts indicate how the airline is thinking about its short -term schedule because it seeks to reduce costs. The airline at a reduced price in difficulty is in negotiations with sellers and landlords, and assesses the size of its fleet, while trying to shrink to find a more stable base, said Davis.

“These evaluations will inevitably affect the size of our teams as we become a more efficient airline,” Davis wrote in his note to employees. “Unfortunately, these are the difficult calls that we must make to emerge more. We know that this adds uncertainty, and we are committed to keeping you as these decisions are made.”

When they were asked how many of its employees would be affected, Spirit told CNBC in an email: “We have started our unions to discuss the network’s impacts and the fleet adjustments to the members of our team, and we will share more as these discussions are progressing.”

Spirit seeks to reduce $ 100 million a year from his pilot group and called a meeting with their union, the Air Line Pilots Association on Wednesday, saying “We are available to continue to negotiate each day thereafter to reach a consensual agreement” by October 1, according to a separate memo, also examined by CNBC, of ​​Spirit Coo John Bendorais.

ALPA warned the pilots one day later: “Even at this early stage, a fact is essential: our contract will not remain intact.” If a consensual agreement is not concluded by October 1, the company declared that it would require compensation for contractual obligations, under the protection of the bankruptcy of the airline, according to the union.

The airline has already announced content and demotions of hundreds of pilots. Some flight agents have already taken unpaid voluntary leaves.

“Although management has not yet indicated that it will seek to modify our (collective agreement), our bankruptcy lawyers working alongside our legal service of the AFA are prepared for all the next steps that management could take,” said the association of flight officers on Wednesday, the union representing the agents of Spirit,.

Spirit, known for its bright yellow aircraft, its weak prices and its countless costs, had been a success, but high costs, travel preferences and increased competition from greater competitors threw the airline. A failed acquisition of JetBlue Airways left the carrier alone.

When the mind emerged from bankruptcy in March, its leaders hoped to find a more stable financial foot. But the carrier has avoided major changes in the process and rather focused on an agreement with its bonds, who exchanged nearly $ 800 million in debt for equity, and it was welcomed after bankruptcy with constantly higher costs and a lower than expected domestic travel request.

He said he had lost almost $ 257 million since March 13, after leaving Chapter 11 in late June.

Earlier this month, Spirit announced the flight cuts to 11 destinations and said that it would not start a 12th as expected, while competitors like United Airlines,, Airlines Frontier And JetBlue Airways have unveiled plans for new flights to try to win Spirit customers.