Spirit Airlines unions agree to pay cuts for flight attendants, pilots

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By Doyinsola Oladipo

NEW YORK (Reuters) -The unions representing Spirit Airlines pilots and flight attendants said on Tuesday that they have reached an agreement with the company for pay and benefits cuts as the carrier tries to rein in costs as part of its ongoing Chapter 11 restructuring process.

  The amended collective bargaining agreements, which are subject to member and court approval, include snapbacks timed for when the ultra-low-cost-carrier expects to be profitable again. Spirit filed for bankruptcy for the second time in a year in August; it said it expects to report losses until 2027.

The Air Line Pilots Association said it has agreed to Spirit’s plans to reduce hourly pay by 8% and slash its retirement account contributions by half from 16% to 8%. The amended collective bargaining agreement will last from the beginning of 2026 through the end of 2027. 

The airline agreed to incrementally restore the pilots’ pay starting in August 2028 with a 4% raise and then another 4% in January 2029. Retirement contributions will return to 16% by July 2029.

Spirit declined a request for comment. 

The flight attendants union said in a memo seen by Reuters that it is recommending its members vote in favor of the agreement, which would go into effect at the beginning of 2026.

The union representing Spirit’s flight attendants said the contract changes protect base pay and healthcare benefits. The Association of Flight Attendants-CWA agreed to reduce incentive overtime pay from one-and-a-half times to one time and eliminate ground holding pay. Overtime pay will improve in July 2027, with the threshold for earning overtime rising to 95 credited hours from 85.

Spirit has agreed to revert to the original term of the flight attendants’ labor agreement once it achieves a 7.5% or higher adjusted pre-tax margin in three consecutive quarters.

(Reporting by Doyinsola Oladipo in New York; Editing by Alistair Bell)