Spirit Airlines has reached an agreement in principle with its pilots, represented by the Air Line Pilots Association (ALPA), and an agreement in principle with its flight attendants, represented by the Association of Flight Attendants-CWA (AFA).
The airline noted that both agreements, which are subject to definitive documentation, ratification, and court approval, represented “important steps and additional progress” in the company's ongoing Chapter 11 restructuring.
Spirit also announced that its senior leadership has committed to taking a salary reduction at a percentage not less than the pilot group's reduction upon ratification of a tentative agreement with pilots.
"These agreements reflect the shared commitment of our team members and principal labour unions in securing a successful future for Spirit, and we thank ALPA and AFA leadership for their partnership and collaboration," said Dave Davis, president and chief executive officer.
"We're grateful to our pilots and flight attendants for their professionalism, resilience and unwavering commitment to safety and our guests as we work to build a stronger airline that Americans can count on for many years to come."
The company estimates that the annual savings from these agreements in principle, if implemented, achieves the target necessary for its next draw under its debtor-in-possession (DIP) financing.