Spirit Airlines plans to cut flights by 25% from November, as it works to recover from its second bankruptcy in nine months.
Its CEO Dave Davis also signalled incoming layoffs in a memo to employees. The budget airline filed for bankruptcy a second time in August, after declaring a first bankruptcy in November.
“As planning begins, you will see a reduction of about 25% in capacity, year over year, as we optimise our network to focus on our strongest markets,” wrote Davis.
“These evaluations will inevitably affect the size of our teams as we become a more efficient airline.”
Spirit emerged from its first bankruptcy in March after lowering its debt by around US$800 million. The company said when declaring its second bankruptcy last month that it would also need to reduce its presence in some markets and cut its fleet size.
United Airlines CEO Scott Kirby said this week that United would not bid for Spirit’s fleet assets.
In July, Spirit said that it would furlough 270 pilots from 1 November, and downgrade a further 140 pilots to first officer from 1 October. It also cut 200 jobs in January.
The airline reported a net loss of $245.83 million last quarter, and saw operating revenues shrink by around $261 million year-over-year. It has temporarily been delisted from the New York Stock Exchange.
“Management has concluded there is substantial doubt as to the Company’s ability to continue as a going concern within 12 months from the date these financial statements are issued,” Spirit said in a Securities Exchange Commission filing last month, before declaring its second bankruptcy.
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