Spirit Airlines has gone through the wringer this year, having filed for a second bankruptcy, cutting down on flight destinations, and receiving an emergency fund to continue operations. The airline announced that it will be cutting capacity that could lead to layoffs.
The airline announced it will cut capacity by 25% starting in November as part of its restructuring plan. As Spirit looks to cut costs where possible, a memo was sent to employees warning that the new plan will likely cause downsizes.
“These evaluations will inevitably affect the size of our teams as we become a more efficient airline. Unfortunately, these are the tough calls we must make to emerge stronger. We know this adds uncertainty, and we are committed to keeping you informed as these decisions are made,” said Spirit CEO Dave Davis.
There are reportedly over 11,000 employees working for the airline, with no further details on what job fields will be laid off.
Spirit continues to struggle in competing with larger airlines and travelers looking for budget-friendly flight options. Since the second bankruptcy, the airline announced it would halt services in over 10 U.S. locations.
Starting early October, the airline will no longer offer flights to Albuquerque, New Mexico; Birmingham, Alabama; Boise, Idaho; Chattanooga, Tennessee; Oakland, California; Columbia, South Carolina; Portland, Oregon; Sacramento, California; Salt Lake City, Utah; San Diego, California; and San Jose, California.
That’s not all, with Spirit also deciding to axe part of its restructuring plan to add Middle Georgia Regional Airport (MCN) in Macon, Georgia. It was scheduled to start on October 16, but it will no longer happen.
Spirit has made various statements on what comes next for the company.
“Spirit is redesigning its network to focus its flying on key markets to provide more destinations, frequencies, and enhanced connectivity in certain of its focus cities, while simultaneously reducing its presence in certain other cities,” said Fred Cromer, chief financial officer of Spirit, in a court statement.
