Spirit Airlines to Furlough 365 More Pilots as Bankruptcy Restructuring Deepens

Spirit Airlines is set to furlough an additional 365 pilots as part of its ongoing Chapter 11 bankruptcy restructuring, the Fort Lauderdale-based carrier announced on October 16. The latest cuts mark another difficult step in the airline’s efforts to stabilize operations amid mounting financial challenges and continued losses.

The move comes just weeks after Spirit revealed plans to shed nearly half of its all-Airbus fleet and close several of its operating bases. The furloughs are part of a broader downsizing strategy aimed at aligning staffing with reduced capacity and returning the airline to profitability.

Spirit emerged from its first round of Chapter 11 bankruptcy in March 2025 with a new leadership team and revised business plan. However, persistent market pressures—weak domestic demand, soaring operational costs, and fierce fare competition—forced the carrier back into bankruptcy protection in August. The company had already furloughed 330 pilots earlier this year and announced another 270 would be laid off in November.

In its latest statement, Spirit said it will furlough 365 pilots and downgrade up to 170 others in early 2026, citing the need to “align staffing across our organization with our previously announced capacity reduction and smaller operating fleet size.” The airline currently employs around 2,400 pilots but is drastically reducing headcount as its fleet shrinks and routes are consolidated.

Spirit’s struggles reflect the growing pains of low-cost carriers facing high post-pandemic labor costs and shifting consumer preferences. Despite its low-fare model, Spirit’s operational expenses have risen sharply, eroding the cost advantage that once set it apart. The airline also faces criticism for poor customer service and complicated booking processes—issues that have driven many travelers toward legacy carriers now offering competitive “basic economy” fares.

Spirit’s fleet, once totaling 214 aircraft, is being significantly scaled back. The carrier’s current lineup includes 62 Airbus A320-200s, 91 A320neos, 29 A321-200s, and 32 A321neos, with its last A319s retired earlier in 2025. Around 65 of these aircraft—roughly 30%—are grounded, many due to Pratt & Whitney geared-turbofan (GTF) engine issues, while others remain parked as part of the restructuring.

The airline is also planning to furlough roughly 1,800 flight attendants by the end of 2025 and has exited 12 airport leases and 19 ground-handling contracts. These steps are part of a massive cost-cutting initiative to right-size operations.

Despite the grim outlook, Spirit has made some progress. On October 13, the airline secured U.S. Bankruptcy Court approval for a $475 million debtor-in-possession financing facility, including $200 million in immediate liquidity. The carrier also reached a settlement with its largest lessor, AerCap, under which Spirit will reject leases on 27 aircraft in exchange for a $150 million payment and the resolution of outstanding claims.

The agreement with AerCap and new financing provide critical breathing room as Spirit seeks to emerge from bankruptcy leaner and more efficient. Yet, with aircraft grounded, staffing cuts deepening, and consumer sentiment lagging, the path to recovery remains steep.

Industry analysts warn that unless Spirit can rebuild customer trust and adapt to shifting market dynamics, its long-term survival may depend on a merger or acquisition. For now, the airline’s focus remains on cutting costs, preserving liquidity, and preparing for what it hopes will be a sustainable relaunch once restructuring is complete.

Sources: AirGuide Business airguide.info, bing.com, aerotime.aero