Fort Lauderdale, United States: Pilots and flight attendants at ultra-low-cost carrier Spirit Airlines have ratified revised labour agreements that include significant pay and benefit concessions intended to help the airline reduce costs and navigate through its ongoing Chapter 11 bankruptcy proceedings.
The unions representing both groups, the Air Line Pilots Association (ALPA) and the Association of Flight Attendants-CWA (AFA-CWA) voted in favour of revised collective bargaining agreements that will lower key compensation elements and generate approximately $100 million in annual savings, Spirit and union representatives said.
Under the terms of the new pilot deal, hourly pay rates will be reduced by about 8 per cent, and employer retirement contributions will be cut in half from 16 per cent to 8 per cent for 2026 and 2027. The agreement also includes scheduled pay restorations, a 4 per cent increase beginning in August 2028 and another 4 per cent in January 2029 contingent on future financial performance.
The flight attendants’ agreement preserves base wages and healthcare benefits while reducing incentive overtime pay and eliminating ground holding pay. Changes to overtime thresholds are slated to take effect from mid-2027.
Under the revised terms, Spirit will receive $50 million immediately to cover day-to-day expenses, with another $50 million available once it advances plans to either reorganize as a standalone carrier or pursue a sale.
Union leaders framed the votes as a strategic choice to keep control of labour terms rather than leave decisions to the bankruptcy court. Ballots were also structured to allow employees to retain their contracts’ core protections and to enable “snapback” of concessions if predefined financial targets are met.
Spirit filed for Chapter 11 protection for the second time in a year in August, citing continued losses and cash-flow challenges. The carrier has said it expects to operate at a loss through 2027 and has pursued various cost-cutting measures, including workforce reductions, network cuts and fleet adjustments, to conserve cash.
“We continue to provide high-value travel options that benefit American consumers whether they fly with us or not, and look forward to welcoming our guests throughout the holiday season and beyond,” CEO Dave Davis said in a statement.
The labour agreements still require approval from the US Bankruptcy Court for the Southern District of New York before they take full effect. The company filed paperwork with the court on Dec. 11 seeking authorisation for the revised contracts.
The votes come amid broader operational challenges for Spirit. Earlier restructuring moves included furloughs of flight attendants and pilots, reductions in flight schedules, and the scrapping of further planned pilot furloughs after updated attrition modeling.
Spirit has also secured emergency financing to support operations through the holiday travel season and beyond while continuing its restructuring efforts.
As the Chapter 11 process continues, analysts say the labour concessions and financial lifelines are crucial to maintaining service and preserving the airline’s viability in a competitive US market characterised by rising costs and stiff competition from larger carriers.
