URGENT UPDATE: Spirit Airlines has just announced agreements in principle with the Air Line Pilots Association (ALPA) and the Association of Flight Attendants (AFA) regarding pay cuts for its pilots and cabin crew members as the airline struggles through its ongoing Chapter 11 restructuring process. This crucial step comes after the carrier reported a staggering loss of over $800 million earlier this year and aims to secure a financially stable future.
The agreements, confirmed in a press release today, highlight the airline’s commitment to repositioning itself for long-term viability. CEO Dave Davis stated, “These agreements reflect the shared commitment of our Team Members and principal labor unions in securing a successful future for Spirit,” emphasizing gratitude towards both unions for their collaboration during this challenging time.
As part of the restructuring efforts, Spirit Airlines plans to reduce salaries, including those of senior leadership, ensuring their cuts match or exceed those of the pilots. While these proposed changes are still subject to final documentation and ratification, the airline anticipates significant annual cost savings that will facilitate future financial support under its debtor-in-possession financing.
Alongside these pay adjustments, Spirit is undergoing substantial operational restructuring. The airline has already cut around 150 salaried positions and will cease operations at five airports, including Phoenix (PHX), Milwaukee (MKE), and St. Louis (STL), starting January 8, 2026. Additional cuts at Rochester (ROC) and Bucaramanga (BGA) will follow on January 13, 2026. These airports account for 15 routes the airline currently operates.
The airline has also been furloughing pilots and cabin crew as part of its cost-reduction strategy, and it aims to further reduce its fleet. In a move to regain capital, Spirit recently signed an agreement with Irish aircraft lessor AerCap to return non-operational aircraft and has reduced its orders for new planes.
Chapter 11 Bankruptcy Protection allows Spirit Airlines to restructure while maintaining operations, offering a lifeline through funding and a reprieve from debt collection. This legal framework has previously helped other airlines, such as Avianca and Philippine Airlines, to emerge stronger.
As Spirit Airlines navigates its restructuring, the focus now shifts to how these agreements and operational changes will impact its future in the competitive aviation market. The airline’s ability to execute its reorganization plan successfully remains to be seen, but today’s announcements mark a critical turning point in its efforts to stabilize.
Stay tuned for further updates as this situation develops.
