Spirit details staff downsizing as it posts heavy loss

Friday, 02 Aug, 2024 0

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.

TravelMole Editorial Team

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.

Some describe it as a natural playground. Some say, it’s simply unique as it offers a great array of travel...

SOUTH AUSTRALIA. FOR THOSE WHO WANT A LITTLE MORE. South Australia. It’s a beautiful place. A place for the restless,...

Our Mission Ecommerce has transformative powers, and we believe everyone should be able to take part. But outdated solutions and...

Holiday Extras is the UK market leader in airport parking, airport hotels, worldwide airport lounges, destination car hire, airport transfers...

The Paris 2024 Organising Committee for the Olympic and Paralympic Games is responsible for planning, organising, financing and delivering the...

We’re the number one choice for travelers to the Greek Islands and Eastern Mediterranean – a fact we love to...

Via Croatia is a concierge-type, full-service luxury DMC working exclusively with travel agents and luxury tour operators. With 20 years...

Air Transat is Canada’s number one leisure airline. It flies to some 60 international destinations in more than 25 countries...

ITB Asia, Asia’s Leading Travel Trade Show, is an annually held B2B trade show and convention for the travel industry; it is designed...

Greater Fort Lauderdale’s assortment of adventures awaits you. Whether you want to relax on the beach as the sound of...

SAINT LUCIA IS NO ORDINARY ISLAND Equal parts beauty and mystique, Saint Lucia captivates anyone who sets foot on her...

Blue Diamond Resorts consistently goes above and beyond guest expectations by delivering groundbreaking vacation experiences through our exceptional collection of...

The superpower in bed banks for 30 years We are an award-winning and trusted accommodation wholesaler since 1991. We are...

Arival advances the business of creating amazing in-destination experiences. We provide events, insights, and community for creators and sellers of...