### Spirit Airlines to Sell Planes and Reduce Workforce Amid Financial Struggles

Spirit Airlines has announced plans to sell a number of aircraft and implement job cuts in an effort to stabilize its finances. This move comes after a significant regulatory setback involving its attempted merger with JetBlue Airways, which was blocked earlier this year.

In a recent filing with the Securities and Exchange Commission (SEC), Spirit revealed that it has identified approximately $80 million in annual cost reductions to be implemented next year. The cost-cutting measures will mainly involve a workforce reduction in line with the company's anticipated flight volume, although specific numbers concerning job cuts were not disclosed.

Additionally, Spirit Airlines has agreed to sell 23 of its A320ceo and A321ceo aircraft to GA Telesis for around $519 million. The airline estimates that the net proceeds from the sale, along with the removal of aircraft-related debt from its balance sheet, will enhance its liquidity by approximately $225 million by the end of 2025.

The company has reported a 1.2% decrease in its third-quarter 2024 capacity compared to the previous year, and it anticipates a more substantial reduction of about 20% year-over-year for the fourth quarter of 2024.

Though the merger with JetBlue fell through, Spirit is exploring potential alternatives, including renewed discussions with Frontier Airlines regarding a possible merger. Sources indicated to The Wall Street Journal that these talks are in early stages and may not lead to a definitive agreement. The airline is also considering the possibility of filing for bankruptcy.

Earlier this year, a federal judge sided with the Justice Department in blocking JetBlue’s $3.8 billion acquisition of Spirit. The ruling was based on concerns that the merger would limit consumer choices and increase fares, contrary to the carriers' claims that it would create a competitive low-fare option against the dominant "Big Four" U.S. airlines.