Spirit Hands Out Furlough Notices Amid Pay Raises for Executives

The low-cost carrier plans furloughs for about 200 of its pilots.

Amelia Walsh

Thursday, July 04, 2024 at 12:00 PM ET

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Edited By: tccjeremy

A Spirit A320neo in Las Vegas (Credit: AirlineGeeks/William Derrickson)

Key Takeaways:

Spirit Airlines is furloughing 200 pilots due to aircraft engine issues and slower growth, a plan initially announced in April.
The airline simultaneously approved significant salary increases and bonuses for its CEO and several C-suite executives, drawing criticism from pilots and their union.
Spirit has also delayed Airbus aircraft deliveries until 2030-2031 to improve liquidity, expecting to save $340 million over the next two years.

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Spirit Airlines pilots and their union have raised concerns over the carrier’s decision to issue furlough notices to pilots while simultaneously approving salary increases for several top executives.

In a July 1 Form 8-K filing, the carrier announced pay raises for four of its C-suite executives and its CEO. At the same time, 200 pilots received furlough notices—a plan the airline initially laid out in April due to aircraft engine issues and slower growth plans.