Spirit Airlines Faces Major Job Cuts as it Cuts Flight Capacity in Bankruptcy Restructuring

Spirit Airlines (NYSE American: FLYY) has revealed plans to reduce its flight capacity significantly as part of ongoing efforts to stabilize the business amid its second bankruptcy filing within a year. The ultra-low-cost carrier announced it will cut its scheduled flights by 25% starting November 2025 compared to the previous year. These reductions come as Spirit navigates severe financial challenges and aims to focus on its most profitable markets.

The airline’s CEO, Dave Davis, communicated in a recent internal memo that this trimming of capacity and network redesign will inevitably affect the size of its workforce. While the exact number of positions to be eliminated has not been disclosed, it is clear that substantial job cuts are on the horizon. The company has already announced plans to furlough about 1,800 flight attendants, approximately one-third of its cabin crew, effective December 1, 2025. This follows an early-year round of layoffs affecting about 200 employees as the company initially struggled to avoid bankruptcy. 

Spirit Airlines’ journey has been especially turbulent in recent months. After emerging from its first Chapter 11 bankruptcy reorganization earlier in 2025, the company quickly found itself facing more financial distress, leading to a second bankruptcy filing in late August. This filing marks a continuing attempt by Spirit to overhaul its financial and operational footing through a court-supervised restructuring process. The airline is simultaneously working with its creditors, lessors, and other key stakeholders to shape a path forward that could allow it to return to profitability. 

The planned flight capacity reduction is a direct reflection of reduced demand for domestic leisure travel, coupled with shifting preferences among travelers who can afford more premium experiences. Spirit’s ultra-low-cost model, which historically appealed to budget-conscious passengers seeking no-frills travel, is under intense pressure. The airline must now adapt by concentrating on its strongest markets and recalibrating its fleet size to better match expected demand. 

In addition to flight attendant furloughs, Spirit Airlines is also taking measures affecting pilots, with around 270 pilots expected to be furloughed and 140 demoted from captain to first officer roles starting November 1, 2025. Union negotiations are ongoing, as the airline seeks to cut $100 million from pilot-related costs to contribute to its broader savings goals. The company has indicated that discussions will continue with various labor groups to identify further cost savings opportunities. 

Operationally, Spirit is recalibrating its strategy under the court-approved restructuring plan. This includes fleet optimization and network redesign aimed at enabling more efficient operations once the restructuring is complete. The airline plans to continue all normal business operations including honoring current flight bookings, tickets, and loyalty rewards during this period. 

Spirit’s situation underscores the challenges faced by budget airlines in a market where travel demand patterns are volatile and competition among carriers to serve both value and premium segments is fierce. Despite the financial strain and the difficult decisions being made, the company’s executive team remains focused on transforming Spirit into a more financially sustainable business in the long term.

The next several months will be critical for Spirit Airlines as it executes its restructuring plan, negotiates with unions, and realigns its operational framework. The reductions in capacity and jobs, while painful, appear necessary steps as the carrier tries to survive the current economic headwinds and restore stability to its business.