Spirit Pilots and FAs Take $100M Pay Cut to Save Airline

Spirit Airlines’ pilots (represented by ALPA) and flight attendants (represented by AFA-CWA) have approved new labor agreements that include temporary concessions, a key step in the airline’s effort to exit Chapter 11 bankruptcy.

Spirit says the revised contracts will reduce operating costs by about $100 million per year, helping stabilize finances and unlock additional restructuring funding. Labor is one of the airline’s largest expenses, and lowering those costs was necessary to meet bankruptcy financing requirements and reassure lenders.

What the agreements include

The pilot agreement delivers about $85 million in annual savings. Pilots accepted an 8 percent cut to hourly pay rates, reduced retirement contributions, and higher expected flying hours.

The flight attendant contract generates about $15 million in savings through changes such as reduced overtime and holiday pay, shorter minimum pay credits that drop from 4.5 hours to 4 hours, and a cap on per diem payments at $2.99 per hour.

Under both agreements, wages and benefits are scheduled to gradually return to prior levels beginning in 2028.

Union leaders described the contracts as a difficult but necessary compromise to help the airline survive and protect long-term jobs.

Spirit’s broader restructuring effort

Spirit filed for Chapter 11 bankruptcy protection in August 2025 after facing weak demand for domestic leisure travel and sustained financial pressure. The restructuring process allows Spirit to continue operating flights, honor tickets, and serve customers while it reorganizes its business.

Earlier in the process, the airline announced furloughs and staffing reductions affecting both pilots and flight attendants.

Spirit has also recently sold assets, including transferring two gates at Chicago O’Hare Airport to American Airlines for $30 million. The airline plans to use the $15 million per gate to pay down specialized bankruptcy loans tied to its restructuring.

Photo by Hieu on Unsplash