Los Angeles, California — Spirit Airlines is poised for significant changes as it grapples with financial instability, announcing plans for further job reductions and drastic schedule cuts. The airline’s CEO, Dave Davis, informed employees this week that the carrier intends to reduce its capacity by 25% starting in November, aiming to concentrate resources on its most profitable markets.

This announcement follows Spirit’s latest bankruptcy filing, marking its second within a year. Davis’s memo to staff, which was confirmed by internal sources, emphasized a critical reevaluation of the airline’s operations to streamline costs. The carrier previously reduced its capacity similarly from the time it emerged from bankruptcy in March until June.

Amid these adjustments, Spirit is renegotiating contracts with vendors and aircraft lessors while considering downsizing its fleet. Davis acknowledged that these strategic decisions would have ramifications for the workforce. “These evaluations will inevitably affect the size of our teams as we become a more efficient airline,” he noted. He also pledged to keep employees informed as discussions proceed.

While the company has yet to detail how many employees will be impacted, a spokesperson stated that they are collaborating with labor unions to assess the effects of these operational changes. Past measures included furloughs and demotions for hundreds of pilots, with some flight attendants opting for voluntary unpaid leave.

The Association of Flight Attendants-CWA, representing Spirit’s flight crews, expressed concerns about the ongoing changes. They alerted members that this bankruptcy cycle could pose more challenges than the last, urging staff to prepare for potential adjustments to collective bargaining agreements.

In the upcoming weeks, Davis plans to meet with union leaders to discuss the situation further. Spirit’s efforts to stabilize operations have been thwarted by mounting costs, evolving travel preferences, and increasing competition from major airlines. A failed merger with JetBlue has left Spirit to navigate these turbulent waters without the anticipated support.

Following its previous bankruptcy, Spirit sought to reduce debt through negotiations with bondholders, resulting in a substantial debt-for-equity swap. However, the airline has faced persistent challenges, reporting losses near $257 million from its exit in March to the end of June, compounded by lower-than-expected demand for domestic travel.

The airline’s recent cutbacks include suspending flights to several destinations and halting plans for new routes. In response to Spirit’s struggles, rivals like United Airlines and Frontier Airlines are ramping up competition with new flight offerings targeting Spirit’s customer base.

As the situation develops, Spirit’s management remains focused on navigating the industry’s shifting landscape while aiming for improved financial stability in the long run.