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Spirit details staff downsizing as it posts heavy loss
Troubled budget carrier Spirit Airlines confirmed its staff downsizing, with furloughs set to kick in next month.
It reported a bigger than expected loss of to $192.9 million.
It detailed its planned cost cutting measures which includes pilot furloughs.
In an effort to find $100 million in savings, the airline is furloughing 240 pilots, and downgrading 100 captains.
Also, it is offering voluntary unpaid leave to flight attendants.
The pilot furloughs were announced not long after the planned merger with JetBlue was abandoned.
It is also ditching 42 routes yet will add 77 new ones, to take advantage of seasonality, in order to improve yields.
“Significant industry capacity increases with ancillary pricing changes in the competitive environment have made it difficult to increase yields.” CEO Ted Christie said.
It improved load factor but overall revenue in the last quarter declined over 10%.
The airline recently announced a wide ranging business model transformation, moving away from its ‘bare fare’ pricing.
It will now offer a choice of more inclusive pricing and premium seating options.
“We are on the right path with our transformation plan to redefine low-fare travel with new, high-value travel options,’ Christie added.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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