Spirit Airlines announced (26-Mar-2020) it will reduce capacity by approximately 45% in Apr-2020 and 75% in May-2020, as a result of reduced travel demand and government restrictions. Measures are being taken to reduce costs, including the following:
- Company wide freezing hire, with the exception of essential front line and management roles;
- Suspension of USD50 million to USD75 million in planned non aircraft capex;
- Additional financing secured through unencumbered assets;
- Reduction of non fuel operation costs by USD20 million to USD30 million, excluding savings made by reduced capacity;
- Discussions with significant stakeholders and vendors regarding contract adjustments or financial support;
- Reduction of CEO and president base salary by 30%;
- Reduction of compensation for all SVPs, EVPs and board of directors members. [more - original PR]