Spirit Airlines has announced plans to sell 23 older Airbus aircraft and implement job cuts in order to address its financial struggles.
The budget carrier aims to raise approximately $519 million from the aircraft sale and reduce costs by around $80 million through workforce reductions.
The airline has faced challenges in returning to profitability following the pandemic, including shifts in travel demand and operational setbacks.
Despite a recent surge in its stock price, Spirit Airlines has seen its shares plummet over 80% this year.
The airline's financial woes have been compounded by a delayed deadline to refinance over $1 billion in debt.
The company has already begun furloughing around 200 pilots since September.
Spirit Airlines has not disclosed the exact number of employees that will be affected by the upcoming job cuts, but it has indicated that its capacity for 2025 will decrease compared to the current year.
Spirit has forecasted a negative operating margin of 24.5% for the third quarter, reflecting its ongoing efforts to streamline operations and manage costs more effectively.
The airline has reportedly revived merger discussions with Frontier Airlines, which could provide a lifeline for Spirit in terms of consolidating operations and enhancing its competitive position.
The recent actions taken by Spirit Airlines highlight the challenges facing the airline industry as it navigates the aftermath of the pandemic.
The decision to sell aircraft and cut jobs demonstrates Spirit's commitment to adapting to changing conditions and stabilizing its finances.