Flight Attendants and Pilots Union Warn of Further Pain as Spirit Airlines Steps Up Cost-Cutting Efforts
In August, Spirit Airlines, an ultra-low-cost carrier based in Florida, filed for bankruptcy protection for the second time in a year. This news has raised concerns among unions representing flight attendants and pilots who are warning their members of potential challenges ahead.
The Association of Flight Attendants released a memo to its members stating that the upcoming bankruptcy will be more difficult than the previous one and that they must be prepared to act to protect their interests. The Air Line Pilots Association (ALPA) also sent a memo to its members stating that Spirit is looking to cut $100 million in annual spending on pilots to conserve cash. This comes after the airline announced plans to furlough 300 pilots by early November and reduce flight capacity by 25% in November.
A spokesperson for Spirit Airlines stated that the company has requested to meet with ALPA union leadership to identify cost savings and a deal is expected to be reached by October 1st.
Aside from the financial struggles, Spirit is also facing pressure from its creditors, including jetmaker Airbus. The company owes more than $1 million for parts received, according to filings. Additionally, there is a dispute with aircraft lessor AerCap Holdings over a deal covering 36 Airbus planes that are due for delivery between 2027 and 2028.
Jason Ambrosi, the president of ALPA, expects more pilots to be furloughed as the post-COVID travel boom has slowed down. He also acknowledged the challenges of finding new positions for the furloughed pilots in an oversupplied market.
According to consultant Kit Darby, the 12 major U. S. carriers hired 4,834 pilots last year, a significant decrease from 13,357 in 2022.
As the situation continues to unfold, it is clear that Spirit Airlines is facing major challenges and will have to make difficult decisions to reduce its cash burn. The unions are working to protect the interests of their members, and the company is seeking ways to decrease spending. With ongoing negotiations and the uncertainty of the travel industry due to the pandemic, only time will tell how the situation will be resolved.