Spirit Airlines cutting 40 routes, hires Amazon exec to help with network planning

[Spirit Airlines airborne over Dallas Fort Worth International Airport]
leekris

As part of its ongoing efforts to slash costs and remain operational during bankruptcy, Spirit Airlines, the airline operating under Spirit Aviation (OTC:FLYYQ [https://seekingalpha.com/symbol/FLYYQ]), will suspend about 40 routes, according to a memo to employees viewed by CNBC.

The suspended routes are expected to come primarily out of Hartford, Connecticut, and Minneapolis, and are part of Spirit’s plan to trim its routes by 25% in November. This prompted the company to recently furlough 1,800 flight attendants [https://seekingalpha.com/news/4497240-spirit-airlines-to-furlough-1800-flight-attendants-after-slashing-capacity].

“While the news has been tough, we believe the clarity will help us move forward as a team,” Rana Ghosh, Spirit’s chief commercial officer, said in a note to employees cited by CNBC.

The company also tapped former Amazon executive Andrea Lusso to help with network planning.

Late last month, the troubled carrier declared bankruptcy for the second time in a year after its last restructuring failed to put the carrier on a sustainable path.

Just weeks prior to filing Chapter 11 protection and only five months after emerging from its first bankruptcy restructuring, Spirit issued a “going concern” [https://seekingalpha.com/news/4483760-spirit-airlines-issues-a-going-concern-warning-about-its-ability-to-survive]warning as it could not maintain enough liquidity as required by creditors. The carrier also blamed increased domestic capacity in the low-fare space and adverse macroeconomic conditions for its financial challenges.

Over the past month alone, Spirit Aviation (OTC:FLYYQ [https://seekingalpha.com/symbol/FLYYQ]) shares have lost 74% in value and have traded under $1 per share for 18 consecutive days.

MORE ON SPIRIT AVIATION HOLDINGS, INC.

* Spirit Aviation: New Equity, Same Broken Model [https://seekingalpha.com/article/4806253-spirit-aviation-new-equity-same-broken-model]
* Spirit's 'Fresh Start': Debt, Doubt, And A Dash Of Hope [https://seekingalpha.com/article/4800934-spirits-fresh-start-debt-doubt-and-a-dash-of-hope]
* Spirit Airlines to furlough 1,800 flight attendants after slashing capacity [https://seekingalpha.com/news/4497240-spirit-airlines-to-furlough-1800-flight-attendants-after-slashing-capacity]
* Spirit Airlines to slash flights; CEO braces employees for more job cuts : report [https://seekingalpha.com/news/4495889-spirit-airlines-to-slash-flights-ceo-braces-employees-for-more-job-cuts-report]
* Historical earnings data for Spirit Aviation Holdings, Inc. [https://seekingalpha.com/symbol/FLYYQ/earnings]