Spirit Airlines is offering voluntary buyouts to salaried employees to cut costs over weak off-peak demand.
The airline also faces operational disruptions due to engine inspections and expects continued financial strains in the upcoming year.
CEO Ted Christie said: “The last few months have been a testament to our resilience and dedication as a company, but we must return to profitability, which will require a series of tough decisions.”
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The company recently announced the grounding of approximately 26 Airbus A320neo aircraft for engine inspections.
It follows a manufacturing defect disclosed by Pratt & Whitney, a unit of RTX.
This defect has strained the airline’s operational capacity.
Christie said: “Now, we’re taking the next difficult step – enacting an Early Voluntary Out program for salaried Team Members.
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The airline had a similar plan during the peak of the Covid pandemic.
He added: “Based on the success of that plan, we’re implementing a similar set of opportunities to help us right-size our organization for our current fleet and business constraints.”
In addition to the voluntary exit program, Spirit Airlines had already taken several other measures to control costs.
The budget carrier had suspended training for new pilots and flight attendants.
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It also limited expense budgets and adjusted its network, including a plan to exit Denver.
The news of the buyouts comes amid ongoing legal battles regarding a potential acquisition of Spirit Airlines by JetBlue Airways.
The Justice Department has sued to block the acquisition, and the trial is expected to conclude in the coming days in Boston.
