Spirit Reaches Union Deals, Cuts More Salaried Jobs Amid Bankruptcy

Spirit Aviation Holdings, parent company of Spirit Airlines, has reached agreements in principle with its pilots and flight attendants as part of its ongoing Chapter 11 bankruptcy process.

The airline finalized the deals with the Air Line Pilots Association (ALPA) and the Association of Flight Attendants-CWA (AFA), meeting a key requirement to secure additional debtor-in-possession (DIP) financing. While specific terms were not disclosed, reports suggest Spirit aimed to save around USD 100 million through labor concessions.

Spirit said the agreements are expected to generate annual cost savings sufficient to qualify for the next phase of its DIP funding. Additionally, senior executives have agreed to take pay cuts “at a percentage not less than the pilots’ group reduction” once the tentative deals are ratified.

If no agreement had been reached, Spirit was reportedly preparing to invoke Section 1113 of the U.S. bankruptcy code, allowing management to seek court approval to amend or terminate collective bargaining agreements if both sides had negotiated in good faith.

The carrier is also planning to eliminate around 150 salaried positions and end operations at Milwaukee General Mitchell, Phoenix Sky Harbor, Rochester (NY), St. Louis Lambert International, and Bucaramanga (Colombia) in early January 2026.

These reductions follow earlier announcements of furloughs for about 1,000 pilots and 1,800 flight attendants, effective December 1, as well as Spirit’s planned withdrawal from 11 markets and further fleet and infrastructure downsizing.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com