Spirit Airlines To Cut Jobs As It Plans To Reduce Capacity By 25% Amid Financial Woes: Report

Budget flight carrier Spirit Aviation Holdings Inc. (NASDAQ:FLYYQ) is reportedly planning to reduce its workforce and cut capacity by over 25% YoY amid ongoing financial woes.

A Shift To Focus On Spirit's Strongest Markets

The reduction comes as CEO Dave Davis, in an internal document obtained by CNBC on Wednesday, said that the company will cut capacity to focus on the airline's strongest markets. "These evaluations will inevitably affect the size of our teams as we become a more efficient airline," Davis said in the document.

Spirit did not immediately respond to Benzinga's request for comment.

The airline also stated in the report, saying that it was in talks with labor unions about potential job cuts. Some pilots have reportedly taken voluntary unpaid leave, the report says. The airline recently also announced furloughs and demotions of its pilots.

Spirit Airlines Files For Bankruptcy

The news comes as the low-cost carrier recently filed for bankruptcy for a second time this year, following continued financial woes as the stock tanked. The company says it aims to shrink its fleet and projected a $257 million loss in June this year. Spirit has already maxed out its $275 million credit facility, with creditors demanding additional collateral.

Spirit had emerged from its first bankruptcy, filed in March as the carrier converted the approximately $800 million debt into equity. However, it remained burdened with around $2 billion in debt and aircraft leasing expenses.

United Airlines Emergency Landing

Elsewhere, pilots operating a United Airlines Holdings Inc. (NASDAQ:UAL) aircraft were forced to perform an emergency landing at an airport in Japan recently after receiving a warning about a fire in the cargo hold. The emergency landing of the aircraft, a Boeing Co. (NYSE:BA) 737, caused the aerospace company's stock to slip.

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