Spirit Airlines announced a restructuring plan that will reduce its flight capacity by 25% year-over-year. This reduction will lead to job cuts beginning in November, according to a company memo obtained by The New York Post.
The ultra-low-cost carrier’s CEO, Dave Davis, informed employees that the changes aim to “optimize our network to focus on our strongest markets” as the airline continues to navigate severe financial challenges.
This restructuring comes just weeks after Spirit filed for bankruptcy protection in late August. It also marks the airline’s second bankruptcy filing within a year. While the exact number of positions to be eliminated remains undisclosed, Davis acknowledged in the internal memo that “these evaluations will inevitably affect the size of our teams as we become a more efficient airline.” The carrier plans to meet with union leaders in the coming weeks.
The announcement follows an earlier round of layoffs at the beginning of 2025. Approximately 200 Spirit employees lost their jobs during the company’s initial attempts to escape bankruptcy.
Spirit Airlines Faces Challenges To Ultra-Low-Cost Model
Spirit’s August 2025 bankruptcy protection filing represents a troubling pattern for the airline. It follows a previous reorganization attempt that apparently failed to stabilize the company’s finances. The airline had previously warned investors it might not survive through the end of the year. Despite these warnings, Davis assured employees that the reorganization process is “continuing to take shape,” though specific details about the plan remain limited.
Now, as part of its restructuring efforts, Spirit Airlines will continue evaluating the size of its fleet, per Davis’s memo. This assessment comes after the carrier already slashed flights to 11 cities in August, creating service gaps that competitor United Airlines quickly filled.
The carrier, which built its business on offering bare-bones fares with additional fees for services like seat selection and carry-on bags, now faces challenges as many competitors increasingly focus on premium travelers willing to pay more for enhanced services and comfort.
Adding to Spirit’s troubles, the airline recently experienced an operational incident when pilots aboard a Spirit jet accidentally flew too close to Air Force One while President Trump was en route to the United Kingdom for his second state visit. Though both flights continued without incident, the controller aboard the president’s aircraft was recorded instructing the Spirit pilots to “Pay attention! Get off the iPad,” according to BBC News.
