Overview
- Spirit announced agreements in principle with ALPA and AFA as part of its ongoing restructuring.
- The company says the expected savings from the pacts meet the target required for the next tranche of DIP financing.
- Specific terms were not disclosed, though the company signaled pay reductions for at least one work group.
- Senior leaders committed to a salary cut at a percentage not less than the pilots’ reduction upon pilot ratification.
- The deals remain subject to definitive documentation, union votes, and bankruptcy court approval as the carrier continues lease rejections, capacity cuts, furloughs, and other cost reductions with a profitability goal projected for 2027 if successful.