Spirit Airlines luggage tags are seen near the check-in counter at Austin-Bergstrom International Airport on April 10, 2024 in Austin, Texas.
Brandon Bell | Getty Images
spirit airlines Shares surged after the troubled budget airline said it would cut jobs and sell aircraft.
Late Thursday, the airline laid out a plan to cut costs and raise cash by selling 23 old Airbus planes. Spirit said in a securities filing that the sale would bring in $519 million.
It also said it would reduce costs by about $80 million, mainly through job cuts.
Last week, the airline again postponed a deadline to refinance more than $1 billion in debt to the end of December, giving its credit card processors some breathing room.
Spirit Airlines has been struggling to return to profitability after the outbreak, facing changes in travel demand and the grounding of dozens of airlines. Pratt & Whitney Powered aircraft.
Despite gains on Friday, Spirit’s shares have plunged more than 80% this year after a judge blocked a proposed acquisition. JetBlue Airways.
Spirit did not immediately comment on how many employees it would cut, but said production capacity in 2025 would be about 10 percent lower than this year. In September, the company began furloughing about 200 pilots. The company said cabin crew were “in a strong position” as many crew members took voluntary leave.
Earlier this week, The Wall Street Journal reported that Spirit and Frontier Airlines Merger discussions resume, shares rise. The airline had no immediate comment. The two low-cost airlines had reached a merger agreement, but due to JetBlue AirwaysAn offer to buy Spirit outright was made in April 2022.
Late Thursday, Spirit forecast third-quarter operating profit margin of 24.5%, better than the negative 29% margin forecast for the previous three-month period.
About The Author
