Spirit Airlines to Furlough 365 Pilots as Financial Struggles Intensify

Spirit Airlines has announced plans to furlough an additional 365 pilots in the first quarter of 2026 amid ongoing financial difficulties. The airline’s struggles have deepened despite securing a financial lifeline of $475 million in late 2024. This latest round of cuts also includes demotions for approximately 170 pilots, as Spirit grapples with significant operational challenges.

The airline, which currently employs around 2,400 pilots, has already furloughed 330 pilots this year and is set to cut another 270 in the coming month. In a significant blow to its workforce, Spirit plans to lay off approximately 1,800 flight attendants, which represents one-third of its total cabin crew. The company has also decided to reject nearly 90% of upcoming aircraft deliveries from its primary lessor, AerCap Ireland.

Financial Challenges and Strategic Cuts

In August of this year, Spirit Airlines filed for bankruptcy for the second time within a year, a move that underscores its dire financial situation. Company leadership indicated that the airline must reduce operating costs by $100 million annually to stabilize its business. This has led to a broader strategy, which includes cutting numerous equipment and facility leases.

According to a press release dated September 30, Dave Davis, the President and Chief Executive Officer of Spirit Airlines, acknowledged the challenges, stating, “These are significant steps forward in a short period of time to build a stronger Spirit.” The company has committed to closing maintenance facilities in Baltimore and Chicago by the end of the year as part of its effort to reduce expenses by approximately $211 million.

The latest furloughs and layoffs coincide with a 25% reduction in the airline’s overall operational capacity. Spirit’s estimated losses for 2025 are expected to exceed $800 million, and the airline has projected it will not achieve profitability until 2027. The current market conditions for affordable air travel are challenging, with many Americans opting not to fly for leisure, and those who do prefer premium travel experiences.

Negotiations and Future Outlook

In light of these challenges, Spirit Airlines has initiated discussions with the Air Line Pilots Association to negotiate a $100 million savings in labor costs. However, the airline has also indicated that it may seek financial relief outside its existing labor agreements. This approach raises concerns about the potential impact on employee relations as the situation develops.

As part of its restructuring efforts, Spirit has already cancelled 12 airport leases and 19 ground handling agreements, further tightening its operational capacity. Additionally, the airline is encouraging flight attendants to volunteer for furloughs of six or twelve months, with a reported 800 volunteers already stepping forward.

A recent decision by the Bankruptcy Court for the Southern District of New York on October 10, 2025, granted Spirit access to $200 million in funds. This ruling pertains to Spirit’s agreements with AerCap Ireland and includes a $150 million payment to the airline, along with the cancellation of 27 Airbus aircraft leases. Currently, Spirit’s fleet consists of 150 aircraft, meaning the lease cancellations represent nearly 20% of its total airframes.

Spirit Airlines aims to cut its losses by about 80% in the coming year, with a target to generate over $200 million in profit by 2027. The company’s strategy focuses on reducing capacity and operating costs, including payroll, while exploring new fare options and service model adjustments. As Spirit navigates these turbulent waters, the future remains uncertain for both the airline and its employees.