Airlines thought 2025 would be their big rebound year. Instead, it’s turning into a bloodbath — especially for the budget carriers that built their business on cheap fares and no-frills travel.
The latest blow came Monday, when Spirit Airlines announced it will furlough about 270 pilots and demote another 140 as part of a sweeping effort to cut costs and right the ship after years of financial turmoil. The captain downgrades take effect October 1, just in time for peak holiday travel, with the furloughs hitting on November 1.
“We are taking necessary steps to ensure we operate as efficiently as possible as part of our efforts to return to profitability,” Spirit said in a statement.
This is Spirit’s third round of pilot furloughs and demotions since September 2024, according to Captain Ryan Muller of the Air Line Pilots Association. He blasted the decision, saying, “Spirit continues to shrink, and with it, the value of pilot seniority and Spirit careers continues to erode.”
The Florida-based carrier has been in freefall for years, filing for bankruptcy protection last November after failed merger attempts, mounting debt, and staggering losses. It clawed its way out in March but hasn’t found solid footing.
In May, Spirit slashed 25% of its summer schedule, dropping from 80,003 flights last year to just 59,304. Fewer flights mean fewer pilots — and more internal friction between executives and flight crews.
Spirit isn’t the only one hurting. The budget airline sector is taking the brunt of a changing travel market. Southwest Airlines — which hadn’t laid off staff in 53 years — cut 15% of its workforce in February. Avelo Airlines, famous for its $30 fares, abandoned its entire West Coast operation. Even United has trimmed some of its popular routes, while Delta reported a 5% drop in domestic budget travel on its latest earnings call.
It’s a simple but brutal reality: price-sensitive travelers are staying home. The leisure market that once powered discount carriers through tough times has evaporated, while luxury travel — the one bright spot in 2025 — is booming. Delta and United have turned heads on Wall Street thanks to massive spikes in first-class and premium international bookings, a trend Spirit can’t tap into without reinventing itself.
And that’s exactly what it’s trying to do. Spirit has made it clear it wants to ditch its bargain-bin image and rebrand as a “premium” carrier. But to get there, it’s gutting its staff, scaling back routes, and bracing for a lean holiday season — a risky bet in a market that’s proving unforgiving to budget airlines.
