WASHINGTON, July 29 (Xinhua) — U.S. finances airways like Spirit and Southwest have chosen to put off pilots, reduce flights and alter enterprise fashions for survival in a tough time of rising prices and shrinking markets.
Spirit Airlines on Monday introduced that 270 pilots will likely be furloughed this fall, with one other 140 pilots downgraded to the place of first officer from captain beginning Oct. 1, CNBC reported.
“We know the way arduous this information hits, and there’s no dressing that up. Spirit continues to shrink, and with it, the worth of pilot seniority and Spirit careers continues to erode,” mentioned Captain Ryan Muller, head of Spirit’s pilot union, quoted by CNBC.
The furloughs are slated to start Nov. 1, in a bid to “higher align staffing with our flight schedule,” the airline mentioned in a press release.
Spirit not too long ago has emerged from its monetary restructuring following its November 2024 chapter submitting, which got here after a number of years of losses. The provider has been attempting to woo clients with extra upscale journey choices, after years of being recognized for providing largely primary providers.
Spirit’s announcement got here as carriers nationwide face dwindling demand, particularly through the low season. Moreover, analysts say there are indicators that the post-COVID journey rebound is slowing amid excessive inflation and financial uncertainty.
Facing persistent challenges, low-cost carriers like Southwest, JetBlue, Frontier and Spirit have been pressured to adapt their methods.
Beginning Tuesday, Southwest fliers want to pick seats when reserving flights past Jan. 27, 2026, a change of its distinctive open seating coverage that has lasted greater than 5 many years and helped it construct a loyal following of consumers.
Southwest Airlines noticed its shares fall greater than 11 % on Wednesday after the corporate revealed earnings and revenues within the second quarter, which fell in need of analysts’ predictions following a basic pattern of falling demand in current weeks.
The provider mentioned it will slash flights throughout low season intervals as airways face fewer bookings for flights inside the United States. In February, the corporate determined to chop 15 % of its employees, or about 1,750 folks, as the corporate scrambled to chop prices, in keeping with U.S. media studies.
The provider has been altering its enterprise mannequin, casting off long-standing insurance policies similar to permitting two check-in luggage without cost and open seating, the airline mentioned on Monday.
“We continued to make significant progress in opposition to our transformational plan within the second quarter, most notably implementing bag charges and a primary economic system product,” mentioned Bob Jordan, CEO of Southwest Airlines, who additionally talked about the change to promote assigned and premium seating.
Faced with sluggish demand for low-cost flights, airways are more likely to discover alternatives in top-end journey, the place premium luxurious passengers stay a extra dependable supply of revenues.
