Spirit Pilots Endorse Temporary Pay Cuts

The struggling ultra-low-cost airline expects to save about $100 million per year through the contract modification.

Spirit A320neo jet
A Spirit Airbus A321neo aircraft. (Photo: Shutterstock | Kevin Hackert)
Gemini Sparkle

Key Takeaways:

  • Spirit Airlines pilots overwhelmingly approved a modified labor contract that includes temporary cuts to their hourly wages (8%) and 401(k) contributions (from 16% to 8%).
  • These reductions, effective January 1, 2026, are a pilot "direct investment" intended to help the ultra-low-cost carrier restructure and emerge from its second bankruptcy.
  • Pilots secured full restoration of their pay and company-funded retirement contributions by mid-2029, preserved all core work rules, and gained a $278 million unsecured bankruptcy claim.
See a mistake? Contact us.

Spirit’s pilots have signed off on a labor contract modification that will drop wages and benefits while the ultra-low-cost carrier restructures and works to emerge from its second bankruptcy.

The pilots voted in favor of a deal worked out by Spirit and their labor union, the Air Line Pilots Association, by 82%, with over 78% of the work group participating, ALPA announced on Thursday. The modification is subject to approval by the U.S. bankruptcy court overseeing Spirit’s case.

As part of the agreement, hourly pilot wages will be cut by 8%, and Spirit will decrease 401(k) defined contributions from 16% to 8%. The reductions will take effect Jan. 1, 2026.

ALPA acknowledged last month that the cuts will be difficult for members but said they were needed to avert an even worse outcome that could have been imposed through a Section 1113 filing.

Full restoration of pay will take place through guaranteed increases on Aug. 1, 2028, and Jan. 1, 2029. Company-funded retirement contributions will be fully restored by July 1, 2029.

“This vote represents Spirit pilots’ direct investment in the airline’s future,” Captain Ryan P. Muller, chairman of the Spirit Airlines Master Executive Council, said in a statement. “Spirit pilots made a difficult choice that provides the company with what it needs from labor to secure financing and complete its restructuring.”

All core work rules, including all scheduling and quality-of-life provisions, were preserved, Muller added, and new protections ensure that union members will not face a court-imposed contract rejection.

The pilots also won a $278 million unsecured bankruptcy claim, which gives them a “meaningful stake” in the airline’s future, ALPA said.

Zach Vasile

Zach Vasile is a writer and editor covering news in all aspects of commercial aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.
Sign-up for newsletters & special offers!

Get the latest stories & special offers delivered directly to your inbox

SUBSCRIBE