Spirit Airlines has reached new agreements with its pilots and flight attendants, a move that could help the budget carrier avoid deeper cost cuts as it works through its Chapter 11 bankruptcy restructuring.
The airline announced on Friday that it had reached agreements in principle with the Air Line Pilots Association (ALPA) and the Association of Flight Attendants-CWA (AFA), both representing Spirit's employees.
These tentative deals include contract changes and cost-saving measures designed to stabilize the airline's finances while keeping its operations running smoothly.
According to Spirit, both agreements still need to be ratified by the unions and approved by the court handling the company's bankruptcy case.
The deals are expected to generate enough annual savings to meet the airline's financial targets for its next round of funding under its debtor-in-possession (DIP) financing.
Spirit also said that its senior leadership team will take salary reductions matching or exceeding the percentage of cuts agreed to by pilots once the deals are finalized.
According to AviaciOnline, the airline stated that these actions reflect a "shared commitment" to rebuilding the company.
"These agreements reflect the shared commitment of our team members and principal labor unions in securing a successful future for Spirit," said Dave Davis, Spirit's president and CEO.
"We're grateful to our pilots and flight attendants for their professionalism, resilience, and unwavering dedication to safety and our guests as we work to build a stronger airline."
Spirit Airlines is urgently negotiating $100 million in labor concessions with pilot and flight attendant unions to unlock the next tranche of its $475 million bankruptcy loan. The low-cost carrier must reach at least one tentative agreement with a union by Thursday to access… pic.twitter.com/k80h7v7hbq
— Flightdrama (@flightdrama) November 7, 2025
Rising Costs Push Spirit Airlines to Slash Jobs
Earlier this year, the Florida-based carrier filed for Chapter 11 bankruptcy protection for the second time.
The move followed months of financial strain caused by rising fuel prices, lower travel demand, and competition from other low-cost airlines.
As part of its restructuring, Spirit has been cutting costs by reducing staff, dropping routes, and scaling back operations.
The company recently confirmed the elimination of about 150 salaried jobs and announced plans to discontinue service at five airports, including Milwaukee and Phoenix, Reuters reported.
The new labor agreements mark a turning point for the airline, which has been under pressure to prove its ability to survive bankruptcy and maintain flight schedules without major disruptions.
The airline said it remains focused on protecting jobs, maintaining safety, and improving its financial performance.
Spirit continues to post updates on its dedicated restructuring website, www.spiritrestructuring.com, where it shares documents and progress reports related to its ongoing Chapter 11 process.
Originally published on vcpost.com
