MW Spirit Airlines furloughs more pilots as part of efforts to cut costs
By Bill Peters
Spirit last week said it would cut staff, reduce its flight capacity and sell jets in an effort to shore up finances
Spirit Airlines Inc. on Wednesday said it would furlough around 330 pilots early next year, the latest money-saving effort by the struggling discount carrier to stay afloat as it wrangles with debt, losses and weaker sales.
The furloughs take hold on Jan. 31, and align with Spirit's $(SAVE.AU)$ plans to scale back its flight network. The airline furloughed 186 pilots last month, according to reports. Spirit had 3,561 pilots as of the end of last year.
"We are implementing a series of cost-savings initiatives throughout our business, including a reduction in workforce, as part of our comprehensive plan to return to profitability," the airline said in a statement.
Shares were up 1.2% after hours.
Spirit has been struggling since JetBlue Airways Corp. $(JBLU)$ abandoned its merger deal with the ultra low-cost carrier earlier this year. Regulators tried to stop the deal, and a judge blocked it, arguing it would harm competition.
Spirit last week said it would cut staff, cut its flight capacity and sell jets in an effort to shore up finances. The Wall Street Journal has reported that Frontier Airlines $(ULCC)$ was considering taking another shot at buying Spirit, and that Spirit was in talks over a possible bankruptcy filing.
Spirit, known for its bare-bones airfares, has had to compete with similar offerings by the major air carriers. It has offered its version of more "premium" service, with extra-legroom seats and more amenities.
The stock, as of Wednesday's close, was down 84.7% so far this year.
-Bill Peters
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October 30, 2024 19:46 ET (23:46 GMT)
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