Spirit Airlines is taking proactive measures to address the financial and operational challenges it is facing, initiating voluntary retirements for a group of its employees. This action responds to the financial pressures faced by the low-cost airline, primarily attributed to weak demand in the off-peak season, compounded by operational disruptions related to inspections of its aircraft engines.
The airline recently had to ground more than two dozen Airbus A320neo aircraft to conduct inspections of their GTF engines, manufactured by Pratt & Whitney.
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In an internal memo accessed by CNBC, Spirit CEO Ted Christie acknowledged the resilience and dedication shown by employees in recent months. However, he emphasized the imperative need to return to profitability, which requires making a series of difficult decisions.
“Now, we are taking the next step: implementing voluntary retirements for some of Spirit Airlines workers,” wrote Christie in the memo. This program, similar to the one implemented during the peak of the Covid pandemic, aims to align the organization’s size with current fleet and demand restrictions.
Christie mentioned that the company has already implemented cost reduction measures, such as suspending the training of new pilots and cabin crew. Additionally, it decided to restrict crew expenses and adjust its destination network, including discontinuing all operations at Denver International Airport.
