Spirit Airlines reaches tentative cost-saving labor deals amid bankruptcy proceedings
- By Reuters -
- Nov 08, 2025
AA
ResizeSpirit Airlines said on Friday it has reached tentative deals with unions representing its pilots and flight attendants that would involve some contract concessions, as the carrier tries to rein in costs as part of its ongoing Chapter 11 restructuring process.
The airline said its senior leadership team has also agreed to take salary reductions at a percentage not less than that of the pilot group once a tentative agreement is ratified.
Earlier this year, the ultra-low-cost-carrier filed for Chapter 11 bankruptcy protection for the second time as it grappled with dwindling cash reserves and mounting losses.
As part of a broader cost-cutting initiative, Spirit has been shedding jobs, trimming routes and scaling back operations in an effort to stabilize its finances and emerge from bankruptcy.
On Wednesday, the company disclosed it had eliminated approximately 150 salaried positions and would discontinue its services at five airports, including Milwaukee and Phoenix.
“Following extensive negotiations in response to the company’s demand for pilot cost savings, Spirit pilots have reached an Agreement-in-Principle with Spirit Airlines on modifications to their collective bargaining agreement,” the Air Line Pilots Association said on Friday.
Both agreements will be subject to ratification by pilots and flight attendants and would also require a court approval.
Spirit added the agreements in principle are expected to generate annual savings sufficient to meet the financial targets required for its next draw under debtor-in-possession financing.
Spirit Airlines to cut about 150 jobs
Spirit Airlines said it would cut about 150 salaried roles, and discontinue service at five airports, including Milwaukee and Phoenix, by January as the low-cost carrier aims to turn itself around.
The carrier said last month it would furlough 365 pilots and downgrade the status of up to 170 pilots in the first quarter of 2026, as part of its restructuring efforts.
Spirit estimated to incur losses of $804 million in 2025. It said its transformation plan to return to profitability in 2027 requires it to reduce its network in 2026.