Spirit Airlines to cut about 150 jobs

Spirit Airlines said on Wednesday 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.

Meanwhile, other U.S. carriers have been rushing to cash in on Spirit’s routes in their core regions.

Spirit Airlines raises doubts months after exiting bankruptcy

Spirit Airlines has warned of going-concern doubts, just months after emerging from bankruptcy as weak domestic demand and dwindling cash reserves strain its operations, sending its shares tumbling 42%.

Adverse market conditions such as elevated domestic capacity and weak demand for leisure travel in the second quarter has resulted in a tough pricing environment for airline, it said in its quarterly report on Monday.

The company expects these pressures to persist through the rest of the year, adding to operational uncertainty. Last month, Spirit said it would furlough about 270 pilots, while demoting another 140, to conserve cash.

“Its liquidity covenants require faster financial improvement than is currently expected,” said Tim Hynes, head of Global Credit Research at Debtwire.

The Florida-based airline, known for its bright yellow livery, had filed for bankruptcy protection last November, after years of losses, failed merger attempts and heavy debt.

It was the first major U.S. carrier to file for Chapter 11 since 2011. It emerged from bankruptcy in March after a court approved restructuring backed by its creditors.

Uncertainty stemming from President Donald Trump’s sweeping tariffs and budget cuts have prompted travelers to curb spending and reassess plans.

The airline said that its credit-card processor has asked it to set aside more funds as collateral or risk losing its contract.