Spirit Airlines is cutting flights by 25% as it restructures again

• Spirit Airlines will cut a fourth of its flights, CEO Dave Davis said in a memo to staff.
• From November, the budget airline will focus its operations on its strongest markets.
• Davis also hinted at a round of layoffs in the memo.

Spirit Airlines is set to reduce its flights by 25% as it struggles with a second bankruptcy filing.

In a memo to staff on Wednesday, CEO Dave Davis said the airline would be “redesigning and strengthening” its flight network starting in November.

“As planning begins, you will see a reduction of about 25% in capacity, year over year, as we optimize our network to focus on our strongest markets,” David said in the memo, seen by Business Insider.

A representative of Spirit did not respond to a follow-up query from Business Insider on which flight routes would be slashed. Spirit, a Florida-based budget airline, operates flights in the US, the Caribbean, and Latin America.

While Davis did not provide any details of layoffs in the memo, he said the restructuring will “inevitably affect” the size of its workforce. He said there were “tough calls we must make to emerge stronger,” and would keep his staff informed about any decisions.

Davis’ memo to his staff comes after the airline filed for Chapter 11 bankruptcy twice in a year, once in November and a second time last month.

In its bankruptcy announcement in November, Spirit said it would undergo financial restructuring to position itself for “long-term success.” It exited bankruptcy in March after cutting its debt by nearly $800 million.

However, in a quarterly report filed in August, the airline said there was “substantial doubt” over its “ability to continue as a going concern within 12 months.”

It reported revenue of $1.02 billion in its latest quarter that ended in June, which was 20% lower than the same period the year before.

And later in August, it filed for bankruptcy a second time, saying in an August 29 press release that it was “executing a comprehensive restructuring of the airline to position the business for long-term success.”

Spirit’s release in August hinted at a cut in flight routes, saying it would redesign its network and reduce its presence in some markets.

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