Spirit Airlines will downgrade around 100 captains and furlough approximately 240 pilots as the carrier looks to deliver on cost saving initiatives.
The announcement came as part of Spirit Airlines second quarter results published on August 1, 2024, just days after releasing details on the introduction of a premium class product.
Spirit also confirmed that it had deferred all aircraft on order from Airbus with jets scheduled to be delivered in the second quarter of 2025 through to the end of 2026 now arriving between 2030 and 2031.
Earlier this week, JetBlue announced that it would postpone the delivery of 44 A321neo aircraft beyond 2030.
Spirit said it was “on track to achieve $100 million of annual run-rate cost savings with approximately $75 million expected to be achieved by year-end 2024”.
The ultra-low-cost carrier will also temporarily suspend the recruitment of pilots and flight attendants. Current cabin crew staff will also be offered voluntary unpaid leaves of absence.
“We will continue to aggressively manage our costs to maintain our position as a low-cost leader in the industry and to make every effort to maintain adequate liquidity,” Fred Cromer, Spirit’s Chief Financial Officer, said.
Reflecting on the second quarter results, Spirit’s President and CEO, said it had been “difficult to increase yields” which led to “disappointing revenue results”.
The CEO blamed “significant industry capacity increases together with ancillary pricing changes in the competitive environment.”
“The continued intense competitive battle for the price-sensitive leisure traveler further reinforces our belief that we are on the right path with our transformation plan to redefine low-fare travel with new, high-value travel options that will allow Guests to choose an elevated experience at an affordable price,” Christie added.
Total operating revenues slipped over 10% in the second quarter 2024 compared to the same period last year.
While revenues stood at $1.28 billion in this year’s second quarter, in 2023 the figure was $1.43 billion.