Spirit Airlines Seeks $100 Million in Pilot Pay Cuts Amid Second Bankruptcy

Spirit Airlines has told its pilots’ union it wants to cut pay and claw back $100 million a year from its collective bargaining agreement as part of its latest restructuring effort. The move follows the ultra-low-cost carrier’s second Chapter 11 bankruptcy filing in less than a year and could result in steep salary reductions for its 3,000 pilots if no deal is reached.

Chief Operating Officer John Bendoraitis outlined the proposed cuts in a letter sent Tuesday to the Air Line Pilots Association (ALPA) and shared with Business Insider. He said Spirit “must achieve significant cost savings” to “secure the company’s future,” adding, “Given the challenges we face, time is of the essence.” The company proposed daily meetings with ALPA beginning Wednesday and warned that if no agreement is reached by October 1, Spirit could ask the bankruptcy court to reject or modify the union contract under Chapter 11 law.

How Much Spirit Pilots Earn

Under the current contract, agreed to in 2023, first-year first officers at Spirit make $97.15 an hour, while captains with at least 12 years of service earn $312 an hour. With a minimum monthly guarantee of 72 flight hours, annual salaries range from roughly $84,000 to $270,000, making Spirit’s pilot pay among the highest of U.S. budget carriers. The proposed $100 million cut implies an average reduction of about $30,000 per pilot, although the impact would vary by seniority. Because seniority heavily influences pay, long-serving pilots who leave for another airline could lose valuable pay and scheduling privileges, even if base salaries are higher elsewhere.

Union and Labor Response

Captain Ryan Muller, chair of Spirit ALPA’s master executive council, told members Tuesday that past bankruptcies show “a significant advantage to reaching a consensual agreement” with management rather than letting a bankruptcy judge impose terms. The union has launched a survey to gauge pilot sentiment ahead of negotiations.

The news also prompted Spirit’s flight attendants’ union to warn members on Wednesday that it is “prepared for next steps management may take” even though the company has not yet sought changes to their contract. “Again, this bankruptcy will be much more difficult than the last one,” the letter said.

Second Bankruptcy in Less Than a Year

Spirit first entered Chapter 11 protection in November 2024 and emerged in March 2025 before filing again last month. CEO Dave Davis told employees Wednesday the airline will cut 25% of its flight capacity and meet with labor unions as part of a broader cost-reduction effort. “Unfortunately, these are the tough calls we must make to emerge stronger,” Davis wrote in a staff memo.

If negotiations fail and Spirit seeks court intervention, the case would test how far a U.S. carrier can go in restructuring labor agreements during bankruptcy — especially at a time when demand for pilots remains high and legacy airlines such as Delta, United and American are paying starting first officers over $100,000 a year.

Sources: AirGuide Business airguide.info, bing.com, finance.yahoo.com