Spirit Reaches Union Pacts as Cost Cuts Deepen

Spirit Airlines has reached tentative agreements with unions representing its pilots and flight attendants as part of its push to control expenses during its ongoing Chapter 11 bankruptcy process. The low-cost carrier confirmed on Friday that the new deals would include certain contract concessions aimed at easing financial pressure.

The airline also said that its senior leadership team will take salary reductions matching or exceeding those of the pilot group once the agreements are ratified. The move underscores Spirit’s broader effort to share the financial burden as it works toward recovery.

Spirit filed for Chapter 11 bankruptcy protection earlier this year for the second time, citing shrinking cash reserves and mounting operational losses. Since then, the carrier has embarked on a deep restructuring plan, trimming routes, laying off staff, and scaling back operations to stabilize its finances.

Just this week, Spirit disclosed that about 150 salaried positions had been eliminated and services at five airports—including Milwaukee and Phoenix—would be discontinued.

According to the Air Line Pilots Association, the union representing Spirit’s pilots, both sides have reached an Agreement-in-Principle involving modifications to the current labor contract. The agreements, which still require ratification by union members and court approval, are expected to generate annual savings sufficient to meet the financial conditions tied to the airline’s next funding round under debtor-in-possession financing.

While challenges remain, Spirit’s latest cost-cutting and cooperative approach with its workforce mark another step toward its goal of emerging leaner and more financially resilient from bankruptcy.