Spirit Airlines is currently going through Chapter 11 bankruptcy for the second time in the past year. At this point, the company is trying to reinvent its business model by becoming a lot smaller, and that was supposed to include a lot of employee furloughs.
There’s some good news on that front, as the airline has called off all pilot furloughs. However, it’s not necessarily for the reason you might expect.
In this post:
Good news for Spirit pilots, as furloughs called off
In mid-October 2025, Spirit announced plans to furlough 365 pilots, and also to downgrade 170 captains to first officers. This was supposed to take effect as of the first quarter of 2026. Spirit has just over 3,000 pilots, so this would’ve represented well over 10% of the entire pilot pool being forced to leave the airline.
The company has now decided to fully backtrack on this decision — now the plan is for no pilots to be furloughed, and for only 25 captains to be downgraded to first officers. The airline will be closing its Las Vegas (LAS) pilot base, though, and giving those pilots the option to instead be based out of Fort Lauderdale (FLL) or Newark (EWR), which is a painful commute, for those who choose not to move.
The reason these furloughs are called off is a mixed bag
The decision to reverse course on furloughs comes after the Air Line Pilots Association (ALPA), which represents Spirit’s pilots, pointed out that the company’s staffing model assumptions were no longer accurate, and that large scale furloughs were not supported by current data.
Huh, what happened here? Well, as it turns out, Spirit pilots are currently resigning at a record rate, and therefore there’s no need for pilots to be furloughed, as they’re leaving voluntarily.
It’s not too surprising to see the rate at which Spirit pilots are leaving the airline, since I imagine that anyone who can find a decent opportunity elsewhere would leave. Spirit pilots have agreed to pay cuts as part of the current bankruptcy process (which the company needed, honestly), and there’s just so much uncertainty about the company’s future.
Even if Spirit stays in business and a pilot isn’t subject to furloughs, one wonders to what extent they may have to move bases, or may face further challenges in their careers. It’s understandable that pilots would want to look for more stability.
Bottom line
Spirit Airlines has called off its planned pilot furloughs. While over 10% of the pilot workforce was supposed to be furloughed as of early 2026, the data no longer supports those needs, and that’s because pilots are leaving voluntarily.
It’s not surprising that many pilots are seeking opportunities elsewhere, given how unstable things are at the airline. At least it makes me happy that no pilots will have to leave the airline against their will.
What do you make of Spirit calling off pilot furloughs?
Just shows how tough it is to be successful in the ULCC business. At the end of the day, you need to maximize the usage (average daily flight hours) and keep costs down to make a reasonable return. Having a good maintenance plan is critical and a routing system that can recover quickly from Irregular Ops. Getting all of these factors in order is very difficult for smaller carriers. Resources like spare aircraft and standby...
Just shows how tough it is to be successful in the ULCC business. At the end of the day, you need to maximize the usage (average daily flight hours) and keep costs down to make a reasonable return. Having a good maintenance plan is critical and a routing system that can recover quickly from Irregular Ops. Getting all of these factors in order is very difficult for smaller carriers. Resources like spare aircraft and standby crews is a luxury that ULCC generally don’t have. Having a nimble IT system capable of rerouting the schedule back into order is probably the most important aspect of recovering from a bad day.
Just shows how tough it is to be successful in the ULCC business. At the end of the day, you need to maximize the usage (average daily flight hours) and keep costs down to make a reasonable return. Having a good maintenance plan is critical and a routing system that can recover quickly from Irregular Ops. Getting all of these factors in order is very difficult for smaller carriers. Resources like spare aircraft and standby...
Just shows how tough it is to be successful in the ULCC business. At the end of the day, you need to maximize the usage (average daily flight hours) and keep costs down to make a reasonable return. Having a good maintenance plan is critical and a routing system that can recover quickly from Irregular Ops. Getting all of these factors in order is very difficult for smaller carriers. Resources like spare aircraft and standby crews is a luxury that ULCC generally don’t have. Having a nimble IT system capable of rerouting the schedule back into order is probably the most important aspect of recovering from a bad day.
Admittedly seeing what Spirit is going through makes it kind of sad to see certainly since its an airline based in Fort Lauderdale.
Wish they would just close the door and go out of business. Maybe standards would go up
Wonderful news!
Irrelevant and irreverent airline. I refuse to fly Spirit, always have.
Thanks for letting us know.
I feel better.
If you have valuable skills and working for a very troubled company unless you're near retirement it would make sense to jump. Sure, they might end up on the bottom of seniority ladder but that's better than at the back of the unemployment line. It's the flight attendants that are going to have a rough time. Flight attendant hiring is way down.
Ah, yes, George Nathan Romey… a champion for the working class…. /s
His new memoir… ‘from homeless to Concierge Key and back again… hard-work…’
airline analysts including me have been saying for at least 3 years that the big 3 - AA, DL and UA - have the financial strength and the business models to make it financially while that is not at all certain that other US carriers.
AA is still not anywhere near as financially strong as UA which itself continues to trail DL in financial metrics while WN has not yet demonstrated that its "new"...
airline analysts including me have been saying for at least 3 years that the big 3 - AA, DL and UA - have the financial strength and the business models to make it financially while that is not at all certain that other US carriers.
AA is still not anywhere near as financially strong as UA which itself continues to trail DL in financial metrics while WN has not yet demonstrated that its "new" business model can deliver financial results comparable to what WN had for decades before covid.
NK is just one of several smaller airlines that will keep trying - including w/ the help of the same bankruptcy courts that the big 3 and their predecessors/ former merger partners used.
NK has already said that it will impose or "negotiate" labor cost cuts while in chapter 11 which is certain to see employees running for the exits given that there is still decent demand for skilled airline labor including for pilots and mechanics.
Some NK employees will stay and make less and the company will either find a size where it can make money or be bought by someone else.
the same principle will be applied for other airlines that are on the bubble.
and eventually AA and WN will face that reality if they don't generate margins closer to DL.
and, of course, UA will have to settle its outstanding labor contracts so its costs will go up and its margins will come down so they will end up financially closer to the midpoint between AA and DL while WN might well prove that it can be at that point or better.
That's the Spirit, Tim!
Tim - you can't have it both ways. According to your collective posts and analysis:
1) United has a financial advantage over Delta because of delayed union contracts - this makes United's labor costs artificially lower, so they are not as close to Delta as they think. Their margins will go down once those new contracts are signed.
2) Delta's costs would go up if their work groups unionize - which means what you won't...
Tim - you can't have it both ways. According to your collective posts and analysis:
1) United has a financial advantage over Delta because of delayed union contracts - this makes United's labor costs artificially lower, so they are not as close to Delta as they think. Their margins will go down once those new contracts are signed.
2) Delta's costs would go up if their work groups unionize - which means what you won't admit: that DELTA has an artificial financial advantage over United.
So which is it? Do employee costs give United some sort of advantage, or does it give one to Delta?
IMO, I think it is Delta that is one benefiting from having lower-cost (not "lower-paid" - lower COST) workers than the rest of the industry. It's like when SWA had a significant fuel-hedging bet lock in substantially lower fuel costs than the rest of the industry did (from 1998 - 2008, SWA estimates it saved $3.5B, or 83% of their collective profits, from their aggressive long-term fuel contracts). Yet you'll remember they crowed about never having a losing quarter those years as if they ran a better operation than everyone else.
They didn't - they just started the race with a head start. Southwest paid WAY less for fuel, so of course they could make a profit when nobody else could. Once that went away, the true nature of their operations became evident. They were average, like everyone else.
Now, even according to you - Delta is doing the same. Delta comes in first financially because they have a starting advantage. Because - as you've stated before - Delta is mostly non-union and joining the AFA / IAM / etc would raise their costs.
Finally - before you answer "It is both!" often employee productivity improves after a new contract is signed - even an expensive one. United's margins got better after the pilot's contract was signed. Employees are often more motivated to work better and harder with a new contract. So it is not necessarily true that the margins will be hit by the same cost of the contract.
Tim, you’re forgetting Alaska and Allegiant. While these airline are smaller in size, they are doing quite well.
Airlines are not especially good businesses to make a profit in, so it’s all relative.
Kathy,
advantages are short-term and long-term.
UA will have to pay its people more and their execs have said it will reduce their earnings.
UA has a short-term advantage that will diminish until labor costs go up.
UA has yet to demonstrate that it can generate margins comparable to DL over the long-term and at comparable labor costs.
Sharon,
post ALK and ALGT's net income margins over the last 3 years and let us know where they fit in the discussion.
Tim, you missed my point. You often dismiss United's improved results - and numbers that are approaching Delta's - as (paraphrasing) "Yeah, well - they have open contracts. Their costs will go up soon. They are not really as good an operation as Delta." You've even said that Delta's employees generate more profit than other airlines' employees, like Delta's workers have some magic skill or training unknown to the rest of the industry.
But it's...
Tim, you missed my point. You often dismiss United's improved results - and numbers that are approaching Delta's - as (paraphrasing) "Yeah, well - they have open contracts. Their costs will go up soon. They are not really as good an operation as Delta." You've even said that Delta's employees generate more profit than other airlines' employees, like Delta's workers have some magic skill or training unknown to the rest of the industry.
But it's not Delta's more skilled workers that equal a better bottom line. It's that Delta's employees are willing to work non-union, and that means Delta has a lower-cost employee group. That's the built-in advantage Delta has. You'll point out other airlines' advantages when it helps you, but ignore one that undermines your points.
Labor costs are only second to fuel in airline costs. Either admit that Delta has a built-in cost advantage from non-union employees, or the next time unionizing the Delta flight attendants, mechanics, gate agents, rampers, etc. comes up as a topic - give up the argument that going union would raise Delta's costs.
Kathy must be new here.
Tim always misses the point. With all the Delta Richards in his mouth, He can only focus and fluff on one thing only.
"airline analysts including me [sic] have been saying.."
Legitimate analysts—covering any industry—don't comment prolifically on public blogs. I think what you do is just called trolling. (with, admittedly, an above-average level of knowledge)
I contest your admission @Scudder.
"an above-average level of knowledge"
Tim doesn't even know what he's talking about. He thinks he knows but he doesn't.
He gets away and convince "average level of knowledge" people by mashing gibberish and technical terms.
People with "above-average level of knowledge" can spot right through his fluff every single time.
Kathy,
nobody says that DL's workers are higher skilled; they are just higher paid.
and, DL's unionized pilots and non-union non-pilots are both paid above average - so your incessant need to say that DL's non-union dynamics are what saves it money is false.
The reason why DL can pay its employees more is because they generate more revenue - both because those in the company that can increase revenue do it for...
Kathy,
nobody says that DL's workers are higher skilled; they are just higher paid.
and, DL's unionized pilots and non-union non-pilots are both paid above average - so your incessant need to say that DL's non-union dynamics are what saves it money is false.
The reason why DL can pay its employees more is because they generate more revenue - both because those in the company that can increase revenue do it for the benefit of all workers and frontline DL employees (mostly non-pilots but also pilots) deliver a higher quality product whether you want to accept it or not.
Eskimo,
you have never demonstrated that you understand the industry.
and, Scudder, it is precisely because I come to the same conclusions as paid professional analysts which is why people do pay attention to what I say. And paid airline employee internet participants don't get the chance to argue w/ paid analysts even if some of them do incessantly w/ me
All analysts are professionals. The rest of us are just hobby commenters. Like you.
"AA is still not anywhere near as financially strong as UA which itself continues to trail DL in financial metrics"
Nope. As you know, Tim, Delta trails United in Free Cash Flow. Which is the only metric that accurately trails current financial performance and ignores accounting nonsense.
"the reason why DL can pay its employees more is because they generate more revenue"
lol. Yeah, no. They're scared to death of their Flight Attendants and ground...
"AA is still not anywhere near as financially strong as UA which itself continues to trail DL in financial metrics"
Nope. As you know, Tim, Delta trails United in Free Cash Flow. Which is the only metric that accurately trails current financial performance and ignores accounting nonsense.
"the reason why DL can pay its employees more is because they generate more revenue"
lol. Yeah, no. They're scared to death of their Flight Attendants and ground workers unionizing and actually feeling secure in their jobs. Delta spends A LOT of money to prevent unionization... which any finance person will be like "huh... why do they spend so much money on that..?"
Because it's a massive financial advantage for Delta to have no union rules -- Tim and Delta know that.
you forgot to change your logon from "rebel"
DL gets a revenue and labor efficiency from being non-union - but DL employees make more as a result.
and every time you or anyone else makes the arguments you do about being non-union, you always fail to note that DL and UA have nearly identical pilot contracts and yet DL pilots make more money in part because of the higher profit sharing that DL pilots...
you forgot to change your logon from "rebel"
DL gets a revenue and labor efficiency from being non-union - but DL employees make more as a result.
and every time you or anyone else makes the arguments you do about being non-union, you always fail to note that DL and UA have nearly identical pilot contracts and yet DL pilots make more money in part because of the higher profit sharing that DL pilots get.
No, Max, it is not because DL is afraid of anything. It is because DL has built a high revenue business model that supports high compensation for unionized and non-unionized employees.
YOU are afraid because you realize that AA and UA cannot duplicate the high revenue and high compensation model that DL has.
TD, "airline analysts including me..."
That's hilarious. Please give us your 'analyst' credentials.
Did the pilots left to fill in for IndiGo?
Either that, or AI... no, not artificial intelligence... Air India.. *ba dum tss*
Now if only our already capable computers are allowed to fly these planes.
Imagine a much safer world.
Wonder what the situation is with the F/A staffing ?
Spirit just might file Chapter 7 before the end of Q1-2026. This airline has no future.
Who doesn't enjoy a thirst-quenching LIQUIDATION... (oh, wait, everyone).
Gosh, how much I with it was Frontier that was failing. So long Spirit, it's been fun.
Just had my farewell NK flight.
Can't say I'm going to miss them.
I can still see live IFE with Frontier as the characters would definitely migrate there.
Did you get Big Front Seat, or did you slum-it in row 3?
Last row.
Best vantage point for their live IFE.