27-Mar-2020 8:45 AM

Spirit Airlines to cut capacity by 45% in Apr-2020

Spirit Airlines announced (26-Mar-2020) it will reduce capacity by approximately 45% in Apr-2020 and 75% in May-2020, as a result of reduced travel demand and government restrictions. Measures are being taken to reduce costs, including the following:

  • Company wide freezing hire, with the exception of essential front line and management roles;
  • Suspension of USD50 million to USD75 million in planned non aircraft capex;
  • Additional financing secured through unencumbered assets;
  • Reduction of non fuel operation costs by USD20 million to USD30 million, excluding savings made by reduced capacity;
  • Discussions with significant stakeholders and vendors regarding contract adjustments or financial support;
  • Reduction of CEO and president base salary by 30%;
  • Reduction of compensation for all SVPs, EVPs and board of directors members. [more - original PR]

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