Spirit Airlines has released new business projections, reporting that that it expects to operate at a loss for the next two years. However, through its ongoing restructuring it expects to return to profit in 2027.
Released on 14 October, the projections estimate losses of US$804 million for 2025 and $145 million for 2026. The Floridian low-cost carrier (LCC) and many of its North American counterparts have been struggling in a difficult operating environment. Changing customer preferences, tariffs, and increased operational costs have all contributed to Spirit filing for bankruptcy twice in the past year.
To streamline operations, Spirit has furloughed 330 pilots and will furlough 270 more in November. By December, the airline will also furlough one-third of its flight attendants. This reduction in employees are expected to save US$211 million, with further cost savings expected to come from the sale of spare parts and the liquidation of its headquarters in Dania Beach, Florida.
As a result of the restructuring, Spirit now expects to secure a profit of US$219 million in 2027. If achieved, this would be the airline’s first year in profit since 2019. Growth is planned from 2027, assuming reduced operations for 2026. Spirit has already pulled out of two major US airports — Houston George Bush International and Denver International — and axed a quarter of its flights.
The industry will be watching closely to see if Spirit’s strategy can produce the forecasted growth on target.
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