Spirit Airlines is preparing to downsize to help itself emerge from bankruptcy.
The airline will shift focus to high-demand travel periods and routes, including Florida, Fort Lauderdale, Orlando, the New York area, and Detroit, as well as expanding premium-class seats.
CEO Dave Davis told CNBC that flights that don’t touch those airports “will be an even smaller part of the network”.
David didn't specify which routes would be cut. Still, he noted high competition on cross-country flights, as well as some weakness in demand for visiting friends and relatives, a key segment of air travel, in Latin America.
While Latin American flying will be reduced, David said it would still be important to Spirit.
In order to exit its second bankruptcy in less than a year, the budget airline said it will get rid of even more of its Airbus fleet.
Spirit’s lawyer, Marshall Huebner, said he expects the airline to emerge from bankruptcy in late autumn or early summer.
Under the new plan, the airline estimates it will have reduced costs and said its debt obligations will be cut from US$7.4 billion to $2.1 billion after this bankruptcy.
The airline will also rework its network and schedules to increase aircraft utilisation.
It also plans to increase its Spirit First and premium economy as well as update its loyalty program.
"Spirit will emerge as a strong, leaner competitor that is positioned to profitably deliver the value American consumers expect at a price they want to pay,” Davis said.
He said Spirit’s annualised fleet cost would be cut by another $550 million, down 65% from before its bankruptcy filing last year. The debtors have also eyed another $300 million in cost savings from nonfleet cuts.
The airline already reduced some of its Airbus fleet and furloughed pilots and flight attendants to cut costs as it reduced its network; some cabin crew were called back to work ahead of spring break.
