New Delhi, April 9: Spirit Airlines is expected to lay off 260 pilots. Spirit Airlines might have taken this decision in response to financial challenges. In a move to conserve cash, the airline will likely have intentions to lay off in September 2024, affecting 260 pilots. The layoff might be a part of a broader strategy that includes deferring Airbus aircraft deliveries as the airline navigates through the economic pressures. The 2024 layoff at Spirit Airlines illustrates the difficult measures that the company is taking to stay in business during these uncertain times. Konica Minolta Layoffs 2024: Japan-Based Multinational Technology Company To Cut 2,400 Jobs As Part of Structural Reform and To Increase Employee Productivity, Say Reports.
As per a report by Business Standard, Spirit Airlines has decided to defer Airbus deliveries and will implement the lay off of 260 pilots as a cash-saving tactic. This decision comes amidst a challenging period the company is facing with the operational costs. By postponing the reception of new aircraft and reducing its workforce, Spirit Airlines aims to better align its resources to streamline its business.
The deferral of Airbus deliveries indicates a shift in Spirit Airlines' fleet expansion plans. This strategic decision is aimed at strengthening the airline's financial position by avoiding the immediate capital expenditures associated with expanding and renewing its fleet. Spirit, the budget airline will postpone the delivery of its new planes until 2030-2031. This decision combined with engine problems from supplier Pratt & Whitney has led to Spirit laying off some pilots, starting on September 1. Amazon Layoffs: E-Commerce Giant Announces Fresh Job Cuts, Lays Off Hundreds of Employees in Cloud Computing Unit.
Spirit is facing a difficult situation with A320neo aircraft due to an issue with Pratt & Whitney Geared Turbofan (GTF) engines when the company is already struggling with a cash crunch. The company had initially planned to increase its fleet to 234 jets by adding six A320neo aircraft in 2025 but due to the current circumstances, Spirit now expects to end 2025 with a total of 219 jets in its fleet with no additional A320neo aircraft. Spirit Airlines' liquidity is expected to improve by approximately USD 340 million over the next two years due to an agreement with Airbus.
(The above story first appeared on LatestLY on Apr 09, 2024 12:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).