Spirit Airlines Cuts Jobs, Exist Airports in Major Overhaul

Spirit Airlines has announced a new round of cost-cutting measures as part of its ongoing effort to regain profitability. The low-cost carrier will eliminate about 150 salaried positions and discontinue operations at five airports, including Milwaukee and Phoenix, by January 2026.

The move comes as Spirit faces mounting financial pressure following an extended period of losses and slowing demand. The airline recently projected an estimated $804 million loss for 2025, underscoring the scale of the challenges it faces in turning its business around.

In a statement, the company said the decision was made to “align operations with market realities and strengthen long-term financial health.” Spirit added that while these steps are difficult, they are “necessary to secure a sustainable future and restore profitability.”

Pilot Reductions and Operational Changes

Last month, Spirit revealed plans to furlough 365 pilots and downgrade up to 170 more in early 2026 as part of its network optimization. The airline’s leadership said these adjustments are key to reducing excess capacity and improving efficiency across routes.

Spirit’s transformation plan, unveiled earlier this year, aims to bring the airline back to profitability by 2027. The company plans to scale back its network in 2026, focusing on routes with higher yields and reducing underperforming operations.

Financial Challenges and Industry Competition

Spirit, known for its ultra-low-cost model, has been struggling with rising operational expenses, intense competition, and weak consumer demand in some markets. The fallout from grounded aircraft, fuel price fluctuations, and the collapse of a proposed merger with JetBlue further strained its finances.

Despite the grim outlook, Spirit Airlines maintains that it remains committed to providing affordable travel options while restructuring its business. “We are taking decisive steps today to ensure Spirit’s success tomorrow,” the company said.

The airline’s restructuring follows a broader trend in the U.S. aviation industry, where several carriers are consolidating routes and cutting costs amid uncertain economic conditions.