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9th December 2024
Spirit Airlines pilots have approved changes to their collective bargaining agreement as the low-cost carrier continues its Chapter 11 restructuring.
The Air Line Pilots Association (ALPA) said yesterday (December 11) that 82% of its pilots voted in favour of the changes, with nearly 79% of eligible pilots participating in the ratification vote.
The new agreement will require approval from the US Bankruptcy Court.
“This vote represents Spirit pilots' direct investment in the airline's future,” said Spirit Airlines Master Executive Council chairman Ryan Muller. “Spirit pilots made a difficult choice that provides the company with what it needs from labour to secure financing and complete its restructuring.”
Muller said Spirit had sought "far deeper cuts” but the association had “preserved all core work rules, including all scheduling and quality-of-life provisions”.
“Instead, we negotiated temporary reductions to pay rates and retirement contributions, effective January 1, 2026,” said Muller.
The agreement ensures these are restored through guaranteed increases from August 1, 2028, and January 1, 2029. Spirit's contributions to retirement funds will be fully restored by July 1, 2029.
“Spirit pilots also negotiated enforceable bankruptcy protections limiting the company's ability to return for additional relief and secured a $278 million unsecured bankruptcy claim, providing direct financial stake in Spirit's successful emergence from bankruptcy,” ALPA said.
“We're pleased to reach another milestone in our restructuring, moving us forward in our mission to better position the airline and secure a future with value travel options for America,” said Spirit president and CEO Dave Davis.
The modified collective bargaining agreement has a two-year duration through December 31, 2027, returning the pilots to the bargaining table on January 1, 2028.
ALPA revealed last week that Spirit would be scrapping its plans to furlough 365 pilots and trim its downgrades of 170 captains down to just 25 in the first quarter of next year.
The decision came after discussions between ALPA and Spirit, with the union informing the airline that several staff resignations from Spirit following the restructuring announcement had rendered a furlough spree unnecessary.
Earlier this week, the US Bankruptcy Court for the Southern District of New York had approved Spirit Airlines' sale of two gates at Chicago O'Hare International Airport to American Airlines for $30 million.
Spirit will use the proceeds to prepay its debtor-in-possession (DIP) financing. Spirit secured up to $475 million in DIP financing from both its existing bondholders and through a settlement agreement with AerCap, which included a $150 million cash injection and lease rejections.
Additionally, court documents from last week showed Spirit will be cutting its fleet in half as part of its restructuring plan.
The airline will keep up to 28 A320neo family aircraft, removing the rest from its fleet, including their associated engines, once the restructuring plan comes into effect. Spirit will need to keep a minimum of 10 A320neo jets in its fleet.
According to its third-quarter results, the airline had 91 A320neo and 32 A321neo as of the end of September 2025.
Additionally, Spirit will keep at least 78 of the older A320ceo family aircraft, with all the remaining removed from its fleet. The company had 91 of the older A320 family models in its fleet at the end of September.
In total, Spirit had 214 aircraft in its fleet. Even with the maximum number of A320neo family aircraft allowed in its plan, the reduction means the airline will cut its fleet in half to 106 aircraft in total.
In its third-quarter earnings report, the airline said it will close its maintenance stations and warehouse operations in Chicago and Baltimore from the start of next year. Management said it will make “volume-based staffing adjustments” across its technical operation stations.
Spirit narrowed its operating loss to $134.9 million, improving from $296.4 million a year prior.
While operating revenues fell from $1.2bn last year to $958.5 million this year, operating expenses also fell to $1.1bn — compared to $1.5bn last year.