Spirit Airlines has reached important agreements with its pilots and flight attendants as it takes another key step in its ongoing Chapter 11 restructuring.
On Friday, the budget airline's parent company, Spirit Aviation Holdings, Inc. announced that it has reached an agreement in principle with the Air Line Pilots Association (ALPA) and the Association of Flight Attendants-CWA (AFA).
Both agreements are subject to definitive documentation, ratification and court approval, but represent important steps for the beleaguered carrier.
According to Spirit, the airline's senior leadership has committed to taking a salary reduction at a percentage not less than the pilot group's reduction when the pilots' deal is ratified. The savings are expected to help Spirit achieve the target necessary for its next draw under its debtor-in-possession (DIP) financing.
"These agreements reflect the shared commitment of our Team Members and principal labor unions in securing a successful future for Spirit, and we thank ALPA and AFA leadership for their partnership and collaboration," Dave Davis, President and Chief Executive Officer, said in a statement.
"We're grateful to our Pilots and Flight Attendants for their professionalism, resilience and unwavering commitment to safety and our Guests as we work to build a stronger airline that Americans can count on for many years to come."
The news comes one month after Spirit said it expected to post its first full-year profit in eight years in 2027.
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