Spirit Airlines unions agree to pay cuts for flight attendants, pilots - Reuters

Spirit Airlines, currently undergoing its second bankruptcy in a year, has secured agreements with its pilot and flight attendant unions for pay and benefit cuts. These concessions are a critical component of Spirit's restructuring efforts, aimed at reducing costs and achieving profitability, which the airline does not anticipate until 2027. The Air Line Pilots Association agreed to an 8% reduction in hourly pay and a halving of retirement account contributions, with incremental restoration of pay and benefits scheduled to begin in 2028.

The flight attendants' union also agreed to contract changes, protecting base pay and healthcare benefits while reducing incentive overtime pay and eliminating ground holding pay. These changes are designed to provide Spirit with the financial flexibility needed to navigate its Chapter 11 proceedings. The agreement with the flight attendants includes a provision to revert to the original labor agreement terms once Spirit achieves a 7.5% or higher adjusted pre-tax margin in three consecutive quarters.

These agreements are subject to member and court approval, representing a significant step in Spirit's efforts to restructure its operations and finances. The concessions from the unions demonstrate a shared commitment to the airline's survival and long-term viability. The amended collective bargaining agreements with the pilots will last from the beginning of 2026 through the end of 2027, providing a degree of stability during the restructuring period. The airline agreed to incrementally restore the pilots' pay starting in August 2028 with a 4% raise and then another 4% in January 2029. Retirement contributions will return to 16% by July 2029.