Spirit said Friday that it has reached new agreements with its pilots and flight attendants as it continues to restructure operations and cut costs.
The deals were negotiated through labor unions representing Spirit’s air crews, specifically the Air Line Pilots Association and the Association of Flight Attendants-CWA. No details were provided, but Spirit implied in a statement that one or both worker groups took a pay cut.
Spirit’s senior leaders have “committed to taking a salary reduction at a percentage not less than the pilot group’s reduction,” the carrier said.
The agreements must still be ratified and signed off on by the court overseeing Spirit’s bankruptcy. If the deals are approved, they would create enough savings for the airline to unlock another draw from its debtor-in-possession financing facility.
“These agreements reflect the shared commitment of our team members and principal labor unions in securing a successful future for Spirit, and we thank ALPA and AFA leadership for their partnership and collaboration,” President and CEO Dave Davis said in a news release. “We’re grateful to our pilots and flight attendants for their professionalism, resilience, and unwavering commitment to safety and our guests as we work to build a stronger airline that Americans can count on for many years to come.”
Spirit declared bankruptcy for the second time in August. It is now working to reduce its debt and operating costs by slashing routes, canceling aircraft leases, and laying off staff. Hundreds of workers and flight attendants have been furloughed over the last several months, and this week Spirit confirmed that about 150 salaried corporate and operations positions had been eliminated.
If the airline’s restructuring plan is successful, officials predict a return to profitability by 2027.
