Spirit plans to slash capacity by about 25% this fall as part of its bankruptcy restructuring, a move that will likely trigger more layoffs at the struggling ultra-low-cost carrier.
In a memo to employees, President and CEO Dave Davis said the change will make Spirit’s operations more resilient and efficient.
“A key pillar of our restructuring is redesigning and strengthening our network,” Davis wrote. “With that in mind, later this afternoon, our operational leaders will receive our preliminary November schedule. As planning begins, you will see a reduction of about 25% in capacity, year over year, as we optimize our network to focus on our strongest markets.”
It was not immediately clear which routes will be affected. The airline’s November schedule will not be finalized until next week.
Davis suggested that the scheduling cuts will come with a reduction in personnel, though he did not offer specifics.
“These evaluations will inevitably affect the size of our teams as we become a more efficient airline,” the memo stated. “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.”
Spirit cut about 200 jobs across the company in January and has furloughed over 500 pilots in recent months. It is currently navigating its second bankruptcy, brought on by mounting debt and a lack of available cash. The carrier exited its first stint in bankruptcy in March.
Davis also said Spirit is working with vendors and suppliers to reduce costs and will be meeting with its labor groups to find “additional ways to become a more efficient competitor in the industry.”
Earlier this month, Spirit announced it will withdraw from 11 U.S. markets, including San Diego, Salt Lake City, Oakland, California, and Portland, Oregon. It will also not move forward with its planned entry into Macon, Georgia, which was supposed to take place in October.
