Spirit Airlines, the bankrupt budget carrier, plans to cut its capacity by about 25% in November as part of a restructuring plan.
The scheduling cuts will likely be accompanied by layoffs as the airline looks to reduce costs, Spirit CEO Dave Davis said in a memo to employees.
“These evaluations will inevitably affect the size of our teams as we become a more efficient airline. Unfortunately, these are the tough calls we must make to emerge stronger. We know this adds uncertainty, and we are committed to keeping you informed as these decisions are made,” he said.
The airline’s new schedule is expected to be finalized next week.
Spirit has also contacted the union representing its pilots in an effort to try to save $100 million, according to a memo from union chair Captain Ryan Mulle.
Mulle said Spirit has indicated that it “must obtain approximately $100 million in annual cost savings from pilots,” and that such efforts will to reduce costs will begin immediately.
The union is surveying its pilot members on the matter.
Earlier this month, Spirit announced it would halt service in a dozen U.S. cities. The company said it is exiting the following markets on Oct. 2: Albuquerque, New Mexico; Birmingham, Alabama; Boise, Idaho; Chattanooga, Tennessee; Oakland, California; Columbia, South Carolina; Portland, Oregon; Sacramento, California; Salt Lake City, Utah; San Diego, California; and San Jose, California.
Spirit also said it is nixing plans to start service in Macon, Georgia, which was originally slated to launch in mid-October. In August, Spirit announced it was filing for bankruptcy for the second time in one year.
The cuts come as discount carriers struggle to compete with bigger airlines, which have increasingly sought to attract budget-conscious travelers.
Southwest, another low-cost carrier, recently started selling tickets with assigned seats for an added cost, as customers exhibit preferences for more premium flight experiences.
Spirit operates roughly 5,000 flights to 88 destinations in the U.S., Caribbean, Mexico, Central America, Panama and Colombia, according to travel search engine Skyscanner.net
and
Kris Van Cleave
contributed to this report.
