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Spirit Airlines to Reduce Capacity by 25% and Cut Jobs

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Spirit Airlines will reduce its capacity by 25% year-over-year starting in November, according to an internal memo cited by Reuters. The decision, communicated by CEO Dave Davis to employees, aims to “optimize our network to focus on the strongest markets.”

Impact on Jobs

The document acknowledges that these adjustments will directly affect teams: “These evaluations will inevitably influence the size of our workforce as we transition into a more efficient airline,” Davis stated.

Although the exact number of positions to be impacted has not yet been specified, the company already anticipates a process of dialogue with union leaders in the coming weeks.

→ United and Spirit Airlines Clash Over Business Model

Fleet Evaluation and Union Negotiations

Spirit Airlines is also reviewing the size of its fleet as part of its reorganization strategy. This analysis occurs within a scenario where the low-cost model faces increasing pressures in the United States.

Second Bankruptcy Filing Within a Year

The airline filed for bankruptcy protection last month, its second time within a year. The previous reorganization attempt failed to strengthen its financial situation.

This setback coincides with a trend of several U.S. companies betting on premium travelers, which calls into question the sustainability of the low prices that characterized Spirit and other low-cost carriers.

The reorganization process includes the possibility of selling assets.

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