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 facing criticism for issuing furlough notices to 200 pilots while simultaneously approving significant salary increases and bonuses for its CEO and four other C-suite executives.
The pilot furloughs, attributed to aircraft engine issues and slower growth plans, coincide with the executive pay raises that became effective July 1.
In an effort to improve liquidity, Spirit also negotiated with Airbus to delay aircraft deliveries until 2030-2031, a move expected to save $340 million over 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.