Spirit Airlines Makes Major Changes Amid Financial Struggles
Spirit Airlines is making major changes in an effort to cut costs amid financial struggles and an uncertain future.
In a recent regulatory filing, the budget airline announced plans for approximately $80 million in cost-saving measures set to begin in 2025.
Photo: Spirit
These savings will come primarily from workforce reductions, though the company has not provided specifics on the number of layoffs or the positions affected.
Spirit’s Struggles
Headquartered in South Florida, Spirit is the second-busiest carrier at Orlando International Airport.
The airline has been struggling for the last few years after failing to return to profitability after the pandemic. Rival carriers attracted some of Spirit’s budget-conscious customers, and the airline was further hit with rising operational costs and more competition.
CNN
The airline has agreed to sell 23 planes to GA Telesis, an aviation services company, for approximately $519 million. The sale includes Airbus A320ceo and A321ceo models. Spirit expects this transaction, along with debt reduction, to improve its liquidity by $225 million through 2025.
Spirit’s stock rose 25% to $3.01 following the announcement but remains down over 80% from the previous year.
Photo: CNBC
Speculation about bankruptcy has surrounded the airline. Previous and unsuccessful merger attempts with JetBlue and Frontier Airlines have been reported, and recent reports suggest Frontier is potentially exploring a renewed bid.
The potential deal could involve restructuring Spirit’s debt through bankruptcy.
Image: MickeyBlog
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