© 2024 WLRN
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Spirit Airlines announces job cuts and fleet sale amid financial struggles

A Spirit Airlines Airbus A321neo aircraft. The airline is based in Broward County.
Business Wire
A Spirit Airlines Airbus A321neo aircraft. The airline is based in Broward County.

In an effort to financially rebound, Spirit Airlines plans to cut jobs and sell some of its fleet.

The Broward-based budget airline has lost more than $2.5 billion since the start of 2020 and faces more than $1 billion in mounting debt.

The airline says it has identified about $80 million of cost-cutting measures set to begin next year — driven primarily by layoffs. Spirit has also agreed to sell 23 airplanes to an aviation services company for about $519 million.

Spirit has two months to refinance about $1 billion dollars of debt.

Spirit stock is down 90% so far this year as investors increasingly worry the carrier may declare bankruptcy. The total stock value of the company is $161 million as of the close of trading Friday. It owes more than $3 billion in debt.

READ MORE: Spirit Airlines has more time to refinance its loans as it borrows more money

This is a News In Brief report. Visit WLRN News for in-depth reporting from South Florida and Florida news.

Helen Acevedo, is WLRN's anchor for All Things Considered.
More On This Topic