Spirit Airlines announced it would begin offering buyouts to salaried employees on Wednesday, November 29. According to CNBC, the company wants to reduce costs and expenses due to weak demand and the grounding of aircraft. The problems arise from the recently announced problem with Pratt & Whitney's engine production.

The ultra-low-cost airline will try to reduce its costs by offering buyouts to salaried employees. Salaried employees could voluntarily accept the takeovers and leave the company, reducing the airline's costs. The airline has seen lower demand during the off-season and at one point even resorted to reducing seats to $29 per flight.

In a memo to Spirit employees obtained by CNBC, Spirit Airlines President and CEO Ted Christie said the airline is making difficult decisions in an effort to return to profitability. Cristina stated:

Overall, Spirit Airlines has struggled financially this year. It posted a loss of $150 million in the third quarter of 2023. Christie attributed this loss to lack of demand and deeper discounts in Spirit Airlines' typical markets. Christie went on to state that the airline did not anticipate a return to normal demand during peak holiday periods and had a bleak outlook for demand in the near future. Due to lack of demand, Spirit Airlines also began slowing its capacity growth by adjusting its future aircraft delivery schedule with Airbus.

Last month, the airline took it a step further by suspending training for both pilots and flight attendants. The airline said it would suspend these programs indefinitely, according to a memo to its crew members obtained by CNBC. The memo also said the airline would adjust crew size to meet the airline's lower demand.

Other plane problems for Spirit

The recently announced engine inspection issue also affected the airline's financial results. Earlier this year, Pratt & Whitney revealed that it had discovered a rare condition in the metal used to make certain engine parts. This unique condition eventually led to the requirement for expedited inspections of aircraft using PW1100G engines, also known as turbofan (GTF) engines, commonly found on Airbus A320neo aircraft.