Spirit Airlines plans to cut jobs and sell some planes amid looming financial sturggles

NEW YORK -- NEW YORK (AP) — Spirit Airlines is cutting jobs and trading disconnected immoderate jets worthy millions of dollars arsenic nan fund bearer intends to trim costs amid looming financial struggles and an uncertain future.

In a Thursday regulatory filing, Spirit said it has identified astir $80 cardinal of cost-cutting measures group to statesman early adjacent year. Those cuts will beryllium driven chiefly by a “reduction successful workforce,” nan Florida-based hose noted.

Spirit did not specify a number for nan layoffs aliases what positions would beryllium impacted. A spokesperson for nan institution declined to remark further erstwhile reached by The Associated Press Friday.

The fund hose besides disclosed that it's agreed to waste 23 airplanes to GA Telesis, an aviation services company, for astir $519 million. The Airbus A320ceo and A321ceo models, which were manufactured betwixt 2014 and 2019, are expected to beryllium delivered starting this period and done February.

GA Telesis celebrated nan acquisition connected Friday, noting that it will importantly boost its fleet portfolio. And Spirit expects nan sale's proceeds, mixed pinch discharging related debt, to use its liquidity by $225 cardinal done nan extremity of 2025.

Shares for Spirit climbed 25%, to $3.01, by midday trading Friday. But nan banal is down much than 80% complete nan past year.

The past fewer years person been acold from soft sailing for Spirit. The hose grounded to return to profitability erstwhile nan COVID-19 pandemic eased and recreation rebounded — mostly owed to rising operational costs and accrued competition. Rival carriers person snagged immoderate of Spirit's budget-conscious customers by offering their ain versions of debased cost, no-frills tickets.

Loss aft nonaccomplishment has continued to heap up successful nan meantime — pinch nan institution losing much than $2.5 cardinal since nan commencement of 2020. Spirit besides faces mounting debt, pinch looming payments totaling more than $1 billion.

Spirit now estimates its fourth-quarter capacity to driblet 20% from past year, according to Thursday's regulatory filing. And nan institution expects capacity to autumn by nan midteens for 2025, which accounts for this month's waste and anterior removal of immoderate different planes from scheduled work owed to ongoing problems pinch nan readiness of Pratt & Whitney GTF engines.

Bankruptcy speculation has besides been hovering complete Spirit, which has go an charismatic takeover target. Although a merger has yet to beryllium successful. JetBlue precocious attempted to bargain Spirit, but to 2 airlines dropped nan woody aft a national judge blocked nan acquisition complete antitrust concerns successful January.

Previously, Frontier Airlines besides tried to merge pinch Spirit, but was outbid by JetBlue astatine nan time. Earlier this week, however, The Wall Street Journal reported that Frontier was successful early talks of exploring a renewed bid, citing unnamed sources acquainted pinch nan matter.

The deal, if reached, could see Spirit restructuring its indebtedness and different liabilities successful bankruptcy, per The Journal — which besides reported that nan hose continues to beryllium successful discussions pinch bondholders complete a imaginable bankruptcy filing. Spirit's spokesperson declined to comment.

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AP Airlines Writer David Koenig successful Dallas contributed to this report.