Spirit Airlines projects profit return in 2027 after restructuring

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By Rajesh Kumar Singh and Doyinsola Oladipo

CHICAGO (Reuters) -Spirit Airlines said on Tuesday it expects to report losses until 2027 when it estimates to post its first full-year profit in eight years.    The ultra-low-cost airline filed for bankruptcy for the second time in a year in August. Spirit and other U.S. low-cost carriers have been grappling with mounting operating costs, changing customer preferences, excess industry capacity and stiff competition from legacy airlines.    In a regulatory filing on Tuesday, the Florida-based airline estimated it would incur losses of $804 million in 2025 and $145 million in 2026. The company, however, expects to swing to a profit of $219 million in 2027 – its first annual profit since 2019.    As part of its restructuring, Spirit is shrinking its operations and fleet to save costs. It is also looking at selling assets to shore up its finances.    Spirit plans to further reduce its airline capacity by 20% next year. Its business plan assumes a reduced network in 2026 followed by growth in 2027-2029.    It has already furloughed about 330 pilots and plans to furlough another 270 pilots next month. It has also decided to furlough approximately 1,800 flight attendants, about one-third of its cabin crew, effective December 1.    The furloughs are estimated to save the company $211 million in costs.    It also plans to liquidate select assets including its headquarters in Dania Beach, Florida, landing and takeoff slots at LaGuardia Airport in New York and thousands of spare parts.    The company said its transformation plan will be fully implemented by the end of 2027 when it expects to produce earnings before interest, taxes, depreciation, amortization and rental costs (EBITDAR), a measure of operating performance, of about $900 million. 

(Reporting by Rajesh Kumar Singh and Doyinsola Oladipo in New York; Editing by Deepa Babington and Aurora Ellis)