Spirit Airlines Says On Track To Achieve $100M Of Annual Run-Rate Cost Savings With Approximately $75M Expected To Be Achieved By Year-End 2024

Author: Benzinga Newsdesk | August 01, 2024 05:56am

Delivering on Cost Saving Initiatives and Network Changes

• On track to achieve $100 million of annual run-rate cost savings with approximately $75 million expected to be achieved by year-end 2024
• Initiatives include:
  • Temporarily suspending the recruitment of pilots and flight attendants and related training costs
  • Offering voluntary unpaid leaves of absences to flight attendants
  • Right-sizing overhead and non-crew operational positions
  • Reducing discretionary capital spend
  • Furloughing approximately 240 pilots and downgrading approximately 100 captains
• Realigning the network
  • Compared to the third quarter 2023, in the third quarter 2024 the Company will have exited 42 markets and added 77 new ones
  • Offering more day of week routes which allows for route expansion at a lower risk profile
  • Aggressively managing capacity to better match seasonal and daily demand variances
  • Aligning capacity to markets where the supply/demand trends are more in balance
• In addition to other liquidity-enhancing initiatives, the Company deferred all aircraft on order with Airbus that were scheduled to be delivered in the second quarter of 2025 through the end of 2026 to 2030-2031

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