Spirit Airlines Faces Financial Turbulence with Job Cuts and Plane Sales

The budget carrier aims to bolster liquidity and stave off bankruptcy amid ongoing financial challenges.

Spirit Airlines plans to implement $80 million in cost-cutting measures, primarily through workforce reductions, starting in early 2025.
The airline has agreed to sell 23 Airbus planes to GA Telesis for $519 million, expecting to improve liquidity by $225 million by the end of 2025.
Spirit has struggled financially, losing over $2.5 billion since 2020, and faces a looming debt payment of over $1 billion.
Speculation of a renewed merger bid from Frontier Airlines has emerged, potentially involving Spirit's debt restructuring in bankruptcy.
Despite recent stock surges, Spirit shares remain down over 80% for the year, reflecting ongoing investor concerns.