"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."
"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."
Spirit will reduce capacity by about 25% year over year beginning in November to optimize its network around strongest markets. The restructuring is expected to shrink the workforce and may include layoffs as the carrier seeks to emerge stronger. The airline has filed for Chapter 11 bankruptcy twice within a year and previously exited after cutting nearly $800 million in debt. Revenue in the most recent quarter ending in June was $1.02 billion, down 20% year over year, and management reported substantial doubt about the airline's ability to continue as a going concern within 12 months.
Read at Business Insider
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