Spirit to furlough a third of its cabin crew as second bankruptcy bites

Spirit Airlines is about to sideline roughly 1,800 flight attendants — about a third of its cabin crew — as the cash-strapped budget carrier slashes costs in its second bankruptcy filing in less than a year. The move, outlined in an internal memo to crew, follows weeks of warnings from executives that a smaller schedule and fleet would mean a smaller workforce.

Chief operating officer John Bendoraitis told flight attendants the company has “difficult decisions” to make to get back to profitability, and that staffing has to match a reduced network. Spirit has been leaning on voluntary leaves to avoid cuts — more than 800 flight attendants are already out on leave — but management says that well has run dry. The airline will ask for more volunteers before it turns to involuntary furloughs, which are slated to kick in on December 1.

The union representing Spirit’s cabin crew, the Association of Flight Attendants-CWA, says voluntary furloughs can run six or twelve months and include continued medical benefits. It’s also coordinating with other airlines to line up “preferential interviews” for affected members. If the company can’t get enough takers, the union says forced furloughs will start in December, with details to follow.

This belt-tightening isn’t limited to the cabin. Spirit has already furloughed pilots and told their union it needs about $100 million in savings from cockpit crews. In a note to members, the Air Line Pilots Association said management wants a deal by October 1 and is prepared to negotiate daily, while also reminding pilots that bankruptcy law gives the company tools to seek relief outside the contract if talks fail.

Spirit’s leadership has been blunt about why the axe is falling now. CEO Dave Davis told employees last week that the airline must shrink to stabilize — fewer airplanes flying fewer routes — after putting off tougher decisions during the last restructuring. The company declined to comment publicly on the latest round of furloughs, but the internal messages make clear the carrier is trying to reset its cost base quickly.

For flight attendants, the human math is stark. Many have spent months on voluntary leave hoping flying would rebound fast enough to dodge deeper cuts. Now, with the schedule pulling back and the bankruptcy court watching every dollar, Spirit is moving to right-size crews to the flying it plans to keep.

None of this guarantees a smooth landing. The carrier still has to win back profitability in an intensely competitive market, while keeping enough people on the payroll to operate reliably through the holidays and into next year. But with bankruptcy round two underway, Spirit is signaling it won’t delay hard choices any longer — even when those choices ground a big slice of its frontline staff.

With input from CNBC, the New York Times, and CBS News.