Budget carrier Spirit Airlines is offering voluntary exit packages to salaried employees as part of its ongoing cost-cutting measures. The airline has been grappling with weak off-peak demand and the need to ground Airbus A320neo aircraft for inspections following a manufacturing defect disclosure by RTX unit Pratt & Whitney.
Spirit CEO Ted Christie emphasized the need to return to profitability and acknowledged the tough decisions ahead in a staff memo. The voluntary exit program for salaried team members is seen as the next step in rightsizing the organization based on the current fleet and business constraints. The move follows the airline’s earlier actions, including the pause of training for new pilots and flight attendants, expense budget restrictions, and tweaks to its network, including the plan to exit Denver.
This initiative comes as JetBlue Airways is in the process of trying to acquire Spirit. However, the Justice Department has filed a lawsuit to block the deal, and the trial is set to conclude in the coming days in Boston. The voluntary exit packages are reminiscent of a similar plan enacted during the height of the COVID-19 pandemic, and the success of that initiative has prompted the current move to address current challenges.
The airline industry has been facing various headwinds, including the impact of the pandemic, supply chain disruptions, and manufacturing defects, forcing companies to implement strategic measures to navigate through these challenges.
