Spirit Airlines uncertainty has some pilots dusting off their resumes
By Allison Lampert and Rajesh Kumar Singh
(Reuters) — Some pilots at Spirit Airlines (NYSE:SAVE) are worried and scouring for other opportunities after a U.S. judge last month blocked the low-cost air carrier's proposed merger with competitor JetBlue Airways (NASDAQ:JBLU), throwing its future into doubt.
Spirit pilots, recruiters and industry sources told Reuters that the ruling has led to increased job applications at other places of employment. Spirit Chief Financial Officer Scott Haralson last week said the company was looking into «right sizing» its labor costs, adding to the uneasiness.
A Spirit spokesperson said attrition levels are not out of the ordinary and pilot resignations this year have trended below its forecast for 2024.
«We remain confident about Spirit's future and are committed to the well-being of our team members,» the spokesperson said.
The ultra-low-cost carrier has struggled to return to sustainable profitability due to softer demand in core markets and the grounding of dozens of its aircraft due to a snag with RTX's Pratt & Whitney Geared Turbofan engines.
Analysts are not sure about Spirit's ability to survive if the $3.8 billion merger deal remains blocked. Some analysts have suggested that the company could face bankruptcy if it cannot shore up its finances, and S&P Global, Moody's (NYSE:MCO) and Fitch all downgraded the airline's credit ratings after the ruling, citing higher default and refinancing risks.
STRESS, WORRY SET IN
«It's very stressful,» said one Spirit pilot with more than five years of experience who has applied for jobs at Delta Air Lines (NYSE:DAL), United and American Airlines (NASDAQ:AAL). Another Spirit pilot said he's spoken to numerous colleagues who are looking for other
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