by Lacey Pfalz
Last updated: 10:50 AM ET, Thu November 30, 2023
Budget air carrier Spirit Airlines began offering voluntary exit packages to salaried employees this week as it seeks to cut costs.
According to CNBC, weak off-peak demand and strained capacity due to a possible engine defect on 26 of its Airbus A320neo airplanes, which are currently out of service being inspected, have caused more recent troubles for the airline.
Yet this isn’t the first cost-cutting measure the budget air carrier has implemented recently. Last month, it paused its training for new pilots and flight attendants, restricted expenses and changed its flight network, including plans to leave Denver.
According to a memo sent out by Spirit CEO Ted Christie, which CNBC saw, the Early Voluntary Out program for salaried employees was enacted during the pandemic, too. “Based on the success of that plan, we’re implementing a similar set of opportunities to help us right-size our organization for our current fleet and business constraints,” wrote Christie.
The news of the organization’s financial struggles comes on the tailwind of the JetBlue-Spirit merger, which the U.S. Justice Department sued to block due to concerns over monopolization, leading to a trial, which has yet to reach a decision.
While the case may seem simple, it is likely to set a precedent for the future of the aviation industry, with some advocating that the merger would create more competition among low-cost airlines.
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