Low cost airline brings service to an end and furloughs staff after bankruptcy filing

A LOW cost airline is pulling out of 11 US cities and putting 1,800 flight attendants on furlough after filing for bankruptcy for the second time in a year.

It comes as the airline scrambles to cut costs and restructure its operations.

SPIRIT Airlines, the Florida-based budget carrier, will end flights to Albuquerque, Birmingham, Boise, Chattanooga, Columbia, Portland, Salt Lake City and the California cities of Sacramento, Oakland, San Diego and San Jose from 2 October.

Spirit said the “difficult decision” was made to match cabin crew numbers with expected flight demand during the bankruptcy process.

“We recognize the impact of this decision on affected team members, and we are committed to treating them with care and respect during this process,” the airline said.

The Association of Flight Attendants, which represents Spirit’s crew, said staff would first be offered six-month or one-year voluntary furloughs from 1 November.

Any remaining cuts will be made by seniority from 1 December.

Union leaders said they had fought to delay furloughs but “the significant reduction of aircraft and flight hours requires a much higher reduction in force.”

Spirit has been hammered by rising costs and fierce competition since the pandemic.

The carrier reported losses of more than £2 billion since 2020 and previously filed for bankruptcy last November, only emerging in March.

It has already announced plans to furlough pilots and downgrade some captains in the months ahead.

Executives are also exploring selling off some aircraft and real estate to shore up finances.

Passengers affected by the route cancellations will be offered refunds or rebooked on alternative flights.

Spirit says customers can still expect “high-value travel options” on its remaining routes across the US, Latin America and the Caribbean.

Further cuts ahead?

The airline announced on August 29 that it had entered a “comprehensive restructuring”.

The cuts come as they redesign their network and focus on key markets in focus cities.

In addition to shrinking its network, the airline will also “optimize” its fleet size, making hundreds of millions of dollars in savings.

In addition to shrinking its network, Spirit Airlines will also be reducing the number of planes in its fleet.

President and Chief Executive Officer, Dave Davis, said at the time: “As we move forward, guests can continue to rely on Spirit to provide high-value travel options and connect them with the people and places that matter most.

“On behalf of our Board and leadership, I want to thank our Team Members for their continued dedication, resilience and commitment to delivering a safe, reliable operation and excellent service to our guests.”

But the pain might not stop there as experts predict that further cuts are coming.