Spirit Airlines is implementing cost-cutting measures, including job cuts and the sale of 23 jets, amid ongoing financial struggles.

The Florida-based airline has announced plans to reduce costs by approximately US$80 million in early 2024, although it has not disclosed the number of jobs affected.

The airline recently sold the jets to GA Telesis for 519 million dollars. Spirit hopes that this sale will enhance its liquidity by US$225 million through 2025. Following the announcement, Spirit’s shares rose by 25 per cent to US$3.01, despite a nearly 80 per cent drop over the past year.

Spirit has faced massive challenges since the COVID-19 pandemic, with operational costs rising and competition intensifying. The airline has incurred losses of nearly US$2.5 billion since 2020 and currently owes over US$1 billion. Their capacity is expected to decrease by 20 per cent in the fourth quarter and by mid-teens in 2025, largely due to engine shortages.

Amid these difficulties, there are ongoing discussions about a potential bankruptcy filing, as well as renewed interest from Frontier Airlines for a merger, following JetBlue’s previous unsuccessful attempt due to antitrust issues.

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