Traveling has become more expensive than ever, with airlines raising fares to near-unattainable prices while eliminating once-standard perks like free checked bags, complimentary beverages, and snacks.
Since its inception, Spirit Airlines has built a reputation for being one of the most affordable carriers in the U.S. It offers very low prices but strips away extras, requiring customers to sacrifice comfort for a cheaper flight.
Despite trying to reduce as many costs as possible, rising operating costs, weaker consumer spending, and increased competition have forced Spirit to make drastic cuts to stay afloat.
Spirit Airlines slashes more routes and jobs
In a memo to employees, Spirit (SAVE) revealed it is reducing its flight capacity by 25% for November’s schedule and alluded to further job reductions. However, the airline has yet to specify which routes will be eliminated or what roles will be affected by the layoffs.
This revelation follows a series of cuts, with Spirit already demoting and discharging more than 400 pilots. As of a recent filing, the airline has around 25,000 employees, including pilots, flight attendants, and staff.
Just weeks ago, Spirit announced it would halt flights in 11 destinations, effective October 2.
Cities losing service
- Albuquerque, New Mexico
- Birmingham, Alabama
- Boise, Idaho
- Chattanooga, Tennessee
- Oakland, California
- Columbia, South Carolina
- Portland, Oregon
- Sacramento, California
- Salt Lake City, Utah
- San Diego, California
- San Jose, California
Image source: Shutterstock
Spirit Airlines’ failed merger attempt
Spirit’s moves to tighten its budget reflect years of financial strain. The airline has struggled to manage mounting debt, leaving it scrambling for survival.
Aiming to stabilize its business, Spirit struck a merger agreement with JetBlue Airways (JBLU) in July 2022, in which JetBlue would acquire Spirit for $3.8 billion.
Related: Popular global airline stops all Washington D.C. flights
However, in January 2024, the U.S. District Court for the District of Massachusetts blocked the deal over antitrust concerns, ruling it would eliminate one of the lowest-priced carriers and increase prices. By March 2024, both airlines announced the merger’s official termination.
Spirit Airlines files for Chapter 11 bankruptcy twice in less than a year
Spirit filed for Chapter 11 bankruptcy in November 2024, as it had accumulated more than $2.5 billion in losses over the last four years.
The airline proposed a turnaround plan, which was expected to be completed by the first quarter of 2025. In the meantime, bondholders agreed to provide $300 million in financing, contribute $350 million in equity investment, and convert $795 million of outstanding debt into stock.
Spirit briefly emerged from bankruptcy in March 2025, but despite efforts to revamp its business, the plan didn’t work.
By August, the airline filed for Chapter 11 bankruptcy for the second time in less than a year, listing its assets and liabilities of between $1 billion and $10 billion.
“Since emerging from our previous restructuring, which was targeted exclusively on reducing Spirit’s funded debt and raising equity capital, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” said Spirit Airlines CEO Dave Davis in a press release.
Spirit’s new restructuring plan
- Redesign its network: Refocusing on key markets and exiting weaker ones
- Optimize fleet size: Matching aircraft capacity with demand to meet profitability
- Address costs: Cutting excess expenses
- Adapt to consumer trends: Offering expanded travel options
Airlines struggle amid rising costs
Spirit is not alone in its struggles. In the past 25 years, industry giants including American Airlines (AAL) , United Airlines (UAL) , and Delta Air Lines (DAL) have all filed for bankruptcy before recovering.
Flight delays and cancellations have also surged to record highs across major airlines and prominent airports in recent months, disrupting travel plans for thousands of people.
While many airlines often hike flight prices to offset costs, Spirit has remained committed to being one of the most affordable, since it depends on traveler frequency to stay profitable.
Yet, even as it increased ticket prices and introduced new fees for perks once included, its budget model has become harder to sustain.
According to the latest Airlines for America survey, 53% of travelers prioritize price when choosing flights.
Still, only 23% book with budget airlines such as Spirit, Frontier, or Allegiant, while most continue to fly with the top three giants: American Airlines, United Airlines, and Delta Air Lines.
Related: How buying cookies can earn you a free JetBlue flight
