Spirit Airlines plans to cut jobs and sell some planes amid looming financial sturggles

recent YORK — recent YORK (AP) — Spirit Airlines is cutting jobs and selling off some jets worth millions of dollars as the apportionment carrier aims to cut costs amid looming financial struggles and an doubtful upcoming.

In a Thursday regulatory filing, Spirit said it has identified about $80 million of expense-cutting measures set to commence early next year. Those cuts will be driven primarily by a “reduction in workforce,” the Florida-based airline noted.

Spirit did not specific a number for the layoffs or what positions would be impacted. A spokesperson for the corporation declined to comment further when reached by The Associated Press Friday.

The apportionment airline also disclosed that it’s agreed to sell 23 airplanes to GA Telesis, an aviation services corporation, for about $519 million. The Airbus A320ceo and A321ceo models, which were manufactured between 2014 and 2019, are expected to be delivered starting this month and through February.

GA Telesis celebrated the purchase on Friday, noting that it will significantly boost its fleet holdings. And Spirit expects the sale’s proceeds, combined with discharging related obligation, to advantage its financial stability by $225 million through the complete of 2025.

Shares for Spirit climbed 25%, to $3.01, by midday buying and selling Friday. But the distribute is down more than 80% over the last year.

The last few years have been far from smooth sailing for Spirit. The airline failed to profitability to profitability when the COVID-19 pandemic eased and trip rebounded — largely due to rising operational costs and increased competition. Rival carriers have snagged some of Spirit’s apportionment-conscious customers by offering their own versions of low expense, no-frills tickets.

deficit after deficit has continued to pile up in the meantime — with the corporation losing more than $2.5 billion since the commence of 2020. Spirit also faces mounting obligation, with looming payments totaling more than $1 billion.

Spirit now estimates its fourth-quarter capacity to drop 20% from last year, according to Thursday’s regulatory filing. And the corporation expects capacity to fall by the midteens for 2025, which accounts for this month’s sale and prior removal of some other planes from scheduled service due to ongoing problems with the availability of Pratt & Whitney GTF engines.

financial setback hazard-taking has also been hovering over Spirit, which has become an attractive takeover target. Although a union has yet to be successful. JetBlue recently attempted to buy Spirit, but to two airlines dropped the deal after a federal judge blocked the purchase over antitrust concerns in January.

Previously, Frontier Airlines also tried to merge with Spirit, but was outbid by JetBlue at the period. Earlier this week, however, The Wall Street Journal reported that Frontier was in early talks of exploring a renewed bid, citing unnamed sources familiar with the matter.

The deal, if reached, could include Spirit restructuring its obligation and other liabilities in financial setback, per The Journal — which also reported that the airline continues to be in discussions with bondholders over a potential financial setback filing. Spirit’s spokesperson declined to comment.

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AP Airlines Writer David Koenig in Dallas contributed to this update.