– by Rajesh Kumar Singh and Doyinsola Oladipo
Spirit Airlines said Tuesday it expects losses through 2027. Only then will it probably achieve its first annual profit in eight years.
The ultra-low-cost airline filed for bankruptcy in August for the second time in a year. Spirit and other U.S. low-cost airlines are struggling with rising operating costs, changing customer preferences, industry overcapacity and fierce competition from traditional airlines.
In a regulatory filing Tuesday, the Florida-based airline estimated it would make losses of $804 million in 2025 and $145 million in 2026. However, the company expects to make a profit of $219 million in 2027 – its first annual profit since 2019.
As part of its restructuring, Spirit is downsizing its operations and fleet to save costs. The company is also considering selling assets to repair its finances.
Spirit plans to further reduce its flight capacity by 20 percent next year. The company’s business plan assumes a reduced route network in 2026, followed by growth in 2027 to 2029.
The company has already laid off around 330 pilots and plans to lay off another 270 pilots next month. The company also decided to lay off about 1,800 flight attendants, about a third of its cabin crew, effective December 1.
The layoffs are estimated to save the company $211 million in costs.
The company also plans to divest select assets, including its headquarters in Dania Beach, Florida, takeoff and landing rights at New York’s LaGuardia Airport and thousands of spare parts.
The company said its restructuring plan will be fully implemented by the end of 2027, when it will achieve earnings before interest, taxes, depreciation, amortization and rental expense (EBITDAR), a measure of operating performance, of about $900 million.
