Spirit Airlines plans to cut jobs and sell some planes amid looming financial sturggles
Spirit Airlines is cutting jobs and selling off some jets worth millions of dollars as the budget carrier aims to cut costs amid looming financial struggles and an uncertain future
NEW YORK — NEW YORK (AP) — Spirit Airlines is cutting jobs and selling off some jets worth millions of dollars as the budget carrier aims to cut costs amid looming financial struggles and an uncertain future.
In a Thursday regulatory filing, Spirit said it has identified about $80 million of cost-cutting measures set to begin early next year. Those cuts will be driven primarily by a “reduction in workforce,” the Florida-based airline noted.
Spirit did not specify a number for the layoffs or what positions would be impacted. A spokesperson for the company declined to comment further when reached by The Associated Press Friday.
The budget airline also disclosed that it's agreed to sell 23 airplanes to GA Telesis, an aviation services company, for about $519 million. The Airbus A320ceo and A321ceo models, which were manufactured between 2014 and 2019, are expected to be delivered starting this month and through February.
GA Telesis celebrated the acquisition on Friday, noting that it will significantly boost its fleet portfolio. And Spirit expects the sale's proceeds, combined with discharging related debt, to benefit its liquidity by $225 million through the end of 2025.
Shares for Spirit climbed 25%, to $3.01, by midday trading Friday. But the stock is down more than 80% over the last year.
The last few years have been far from smooth sailing for Spirit. The airline failed to return to profitability when the COVID-19 pandemic eased and travel rebounded — largely due to rising operational costs and increased competition. Rival carriers have
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