A Spirit Airlines plane takes off at Los Angeles International Airport in Los Angeles, June 1, 2023.
Mario Tama | Getty Images
Spirit Airlines is offering voluntary exit packages to salaried employees, the budget carrier’s latest cost-cutting measure because it expects financial strains to proceed next 12 months.
The airline has been facing weak off-peak demand and last month said it’ll need to ground a mean of 26 Airbus A320neo aircraft for inspections of engines made by RTX unit Pratt & Whitney after that company disclosed a manufacturing defect in August, straining its capability.
“The previous few months have been a testament to our resilience and dedication as an organization, but we must return to profitability, which is able to require a series of tough decisions,” CEO Ted Christie said in a staff memo on Wednesday, which was seen by CNBC.
The airline had already paused training for brand spanking new pilots and flight attendants, CNBC reported last month. It has also restricted expense budgets and tweaked its network, including a plan to exit Denver.
“Now, we’re taking the subsequent difficult step – enacting an Early Voluntary Out program for salaried Team Members,” Christie wrote within the memo. The corporate had an analogous plan throughout the height of Covid pandemic. “Based on the success of that plan, we’re implementing an analogous set of opportunities to assist us right-size our organization for our current fleet and business constraints.”
JetBlue Airways is within the means of trying to accumulate Spirit, a deal the Justice Department has already sued to dam with a trial that is set to wrap up in the approaching days in Boston.
The Wall Street Journal reported the Spirit Airlines buyouts earlier Wednesday