Why are Spirit Airlines pilots taking a pay cut?

Spirit Airlines pilots are taking a pay cut as part of a restructuring agreement to help save the company from bankruptcy.

Will flight attendants at Spirit Airlines also lose pay?

Flight attendants will not have their hourly pay cut, but their overtime rates are being reduced as part of the agreement.

When will the Spirit Airlines pay cuts take effect?

The agreed-upon pay and benefit cuts for Spirit Airlines employees are expected to take effect on January 1, 2026, pending court approval.

Home / Business and Economy / Spirit Airlines Staff Take Pay Cut to Avert Bankruptcy

Spirit Airlines Staff Take Pay Cut to Avert Bankruptcy

21 Dec

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Summary

Pilots will see an 8% hourly pay cut and reduced retirement contributions.
Flight attendants' overtime rates will decrease but hourly pay remains unchanged.
These cuts are projected to save Spirit Airlines $100 million annually.

Spirit Airlines Staff Take Pay Cut to Avert Bankruptcy

Spirit Airlines' pilots and flight attendants have agreed to significant pay and benefit reductions in a crucial effort to steer the company away from bankruptcy. The Air Line Pilots Association and the Association of Flight Attendant-CWA unions negotiated these concessions last month, which include an eight percent cut to pilots' hourly wages and a reduction in retirement contributions from 16% to eight percent.

While flight attendants will not experience a reduction in their base hourly pay, their overtime rates will decrease from 150% to 100%. These agreements, if approved by the court, are set to take effect on January 1, 2026, and are expected to generate substantial savings for Spirit, totaling $85 million from pilots and $15 million from flight attendants annually.