Spirit Airlines cuts 200 jobs in rush to cut bankruptcy costs

Spirit Airlines is cutting about 200 jobs companywide as the struggling budget airline seeks to cut costs after filing for Chapter 11 bankruptcy in November.

“We are executing plans to right-size our organization to align with our current fleet size and flying level and ultimately optimize our airline,” the airline told CNBC in a statement . “After reviewing our organizational structure, we have made the difficult decision to eliminate approximately 200 positions across various departments across the airline.”

The Dania Beach, Fla.-based airline had already laid off hundreds of pilots and offered furloughs to flight attendants to try to cut costs. It has also reduced its network and struck deals to sell part of its fleet of Airbus jetliners to raise cash.

The airline has been struggling since its proposed merger with JetBlue was blocked by a federal court on antitrust grounds a year ago, adding to difficulties that also included the recall of a Pratt & Whitney engine and rising labor costs after the pandemic.

“While we will continue to identify additional operational efficiencies, these efforts, along with our recent pilot furloughs, will help achieve our previously announced goal of $80 million in annualized cost reductions,” Spirit said. “These decisions are never made lightly, and we are committed to treating all affected team members with the utmost care and respect.”

The carrier said it plans to emerge from bankruptcy this quarter.