Spirit Airlines has implemented voluntary departure packages for salaried staff members, marking the latest cost-cutting move as the low-cost airline anticipates continued financial difficulties in the upcoming year.
The airline has been dealing with weak off-peak demand, and it announced last month that it would have to ground an average of 26 Airbus A320neo aircraft for engine inspections. Pratt & Whitney, a division of RTX, disclosed a manufacturing defect in August, pressing the airline to find a solution.
CEO Ted Christie stated in a staff memo obtained on Wednesday, “The past few months have been a testament to our resilience and dedication as a company, but we must return to profitability, which will require a series of tough decisions.”
According to report last month, the airline had already put a halt to training for incoming flight attendants and pilots. It has also adjusted its network, including a plan to leave Denver, and limited its spending budgets.
Christie stated in the memo, “As we move forward, we’re going to have to implement an Early Voluntary Out program for salaried Team Members. At the height of the Covid pandemic, the company had a similar plan. “We’re implementing a similar set of opportunities to help us right-size our organization for our current fleet and business constraints, based on the success of that plan.”
JetBlue Airways is currently attempting to purchase Spirit; however, the Justice Department has already filed a lawsuit to halt the deal, and the trial is scheduled to conclude in Boston within the next few days.
The Spirit Airlines buyouts were first reported by The Wall Street Journal earlier on Wednesday.
