Spirit Airlines' pilots and attendants ratify contracts with $100M in pay cuts to aid bankruptcy recovery, effective January 1.
Spirit Airlines' pilots and flight attendants have ratified new two-year contracts that include pay concessions estimated at $100 million annually, aimed at helping the carrier emerge from bankruptcy, according to London's Flight Global.
Leaders of the Air Line Pilots Association (ALPA) and the Association of Flight Attendants (AFA) supported the agreements, which Spirit Aviation submitted to the US Bankruptcy Court in New York for approval. This marks the airline's second time under court supervision within a year.
The revised contracts will take effect on January 1. ALPA represents approximately 3,100 pilots, while AFA covers 5,300 attendants. Spirit stated that these agreements provide stability and predictability, enabling the airline to compete more effectively in a challenging market.
The pilot agreement is projected to save $85 million annually through an 8 percent reduction in hourly pay and decreased retirement contributions. Wages and retirement payments are scheduled to revert to previous levels starting in August 2028, after the agreement expires, although both parties anticipate continuing to operate under its terms during negotiations.
The flight attendant contract is expected to save $15 million annually by reducing overtime and holiday pay, eliminating pay during ground holds, and modifying scheduling provisions.
Both unions ratified the agreements on December 11. ALPA council chair Ryan Muller stated that the vote reflects the pilots' direct investment in Spirit's future, providing the company with the necessary labor support to secure financing and complete its restructuring.
