You thought Spirit Airlines was already cost cutting with their budget airlines. Now, they truly are cutting costs as their second Chapter 11 bankruptcy is hitting them.
Spirit Airlines is implementing dramatic cost-cutting measures including a 25% capacity reduction and the furlough of approximately 1,800 flight attendants and 270 pilots, as the ultra-low-cost carrier struggles through its second Chapter 11 bankruptcy filing in less than a year.
The Florida-based budget airline announced the sweeping changes as part of an ongoing restructuring effort aimed at achieving roughly $100 million in annual cost savings while aligning operations with its reduced fleet size and route network.
Massive Flight Attendant Furloughs
Spirit will furlough approximately 1,800 flight attendants effective December 1, 2025, representing about one-third of its 5,200-member cabin crew workforce. The timing places the cuts just before the busy Christmas travel season, creating additional operational challenges for the struggling carrier.
“As part of our ongoing restructuring, we are taking steps to align staffing with our fleet size and expected flight volume,” Spirit said in a statement. “In line with this process, we have made the difficult decision to furlough approximately 1,800 Flight Attendants, effective Dec. 1, 2025.”
The Association of Flight Attendants-CWA, representing Spirit’s cabin crew, confirmed that management must offer voluntary furloughs first before proceeding with involuntary furloughs based on seniority. The union noted that “the significant reduction of aircraft and flight hours requires a much higher reduction in force and the company is clear that a furlough is necessary.”
Pilot Workforce Decimated
The pilot group faces equally severe cuts, with 270 pilots scheduled for furlough starting October 1, 2025. Additionally, 140 captains will be demoted to first officer positions on November 1, 2025, further reducing labor costs while maintaining some operational capability.
The Air Line Pilots Association, representing Spirit pilots, revealed that the airline is seeking approximately $100 million in annual cost savings from pilot contracts alone. While union leadership has acknowledged the airline’s demands, they have declined to discuss specific concession options publicly.
Unprecedented Capacity Cuts
Spirit’s capacity reduction represents one of the most dramatic schedule cuts by a major U.S. carrier in recent memory. The airline will slash November 2025 capacity by 25% compared to November 2024, focusing operations on only its most profitable markets.
CEO Dave Davis addressed employees in a Wednesday memo, warning that further cuts could be coming: “These evaluations will inevitably affect the size of our teams as we become a more efficient airline. Unfortunately, these are the tough calls we must make to emerge stronger.”
Second Bankruptcy in Eight Months
The dramatic restructuring comes as Spirit navigates its second Chapter 11 bankruptcy filing, having originally entered bankruptcy protection in November 2024. The airline briefly emerged from bankruptcy in March 2025 after reducing debt by approximately $795 million, but quickly found itself in financial distress again.
The Association of Flight Attendants-CWA warned members that “this bankruptcy will be much more difficult than the last one and we must be prepared to act to protect our interests as flight attendants,” signaling expectations of more severe cuts than the initial restructuring.
Route Network Shrinking
Beyond workforce reductions, Spirit is dramatically shrinking its route network. The airline announced it would cease operations in 11 U.S. cities in October 2025, including:
- Albuquerque, New Mexico
- Birmingham, Alabama
- Boise, Idaho
- Chattanooga, Tennessee
- Columbia, South Carolina
- Oakland, California
- Portland, Oregon
- Sacramento, California
- Salt Lake City, Utah
- San Diego, California
- San Jose, California
These market exits represent a strategic retreat from less profitable secondary markets as Spirit focuses resources on core routes with stronger demand and pricing power.
Uncertain Future
Despite the restructuring efforts, Spirit’s long-term viability remains questionable. The airline must successfully emerge from bankruptcy while maintaining enough operational capability to serve customers and generate revenue. The timing of workforce cuts just before the busy holiday season poses additional operational risks.
CEO Davis acknowledged the uncertainty facing employees: “We know this adds uncertainty, and we are committed to keeping you informed as these decisions are made.” However, the scale of cuts suggests that even employees who retain their positions may face additional concessions as the airline seeks to improve its cost structure.
Looking Ahead
For the nearly 2,100 employees facing furlough, the immediate concern is financial survival during what Spirit describes as “temporary” layoffs. However, given the airline’s struggles and the dramatic nature of the cuts, many industry observers question whether these positions will ever return.
The broader implications for the U.S. airline industry include reduced competition on many routes and potential upward pressure on fares as Spirit’s capacity exits the market. For passengers who relied on Spirit’s low fares, the airline’s struggles represent a loss of affordable travel options at a time when airline consolidation has already limited competitive choices in many markets.