Oct 6, 2025
Spirit Airlines, which filed for bankruptcy for the second time in a year in August, will be furloughing 1,800 flight attendants as part of ongoing restructuring, effective Dec. 1, according to multiple news outlets. (1)
The news comes after reports the budget airline would demote 140 pilots on Oct. 1 and furlough 270 pilots on Nov. 1. (2) Further reports state that in November it will also reduce its flight schedule by 25% and suspend 40 routes — just in time for the busy Thanksgiving and Christmas holiday travel seasons. (3)
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So, what will that mean for your travel plans, and what does it say about budget airlines?
Budget airlines are struggling
Spirit Airlines isn’t the only budget airline in trouble. Southwest, Frontier and JetBlue all reported net losses in the first quarter of 2025, according to Reuters. (4)
Budget airlines have struggled to return to profitability since the pandemic, the report says. But now they’re dealing with a slump in demand among budget-conscious travelers amid economic uncertainty.
However, even with soft demand, full-service legacy carriers Delta and United Airlines managed to hold onto their margins. This can be partially attributed to demand from high-end leisure travelers.
Indeed, Bank of America Institute’s Consumer Checkpoint: Gains and Gaps report, released Aug. 12, found that “a widening gap has opened up between the wages and spending growth of lower-income households and other cohorts.” (5)
“As the odds of slower economic growth and higher inflation rise, the margin gap between budget and full-service airlines is expected to widen further,” per Reuters.
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What does this mean for holiday travel?
Americans who rely on budget carriers that serve smaller regional airports or rural destinations may want to book tickets early for Thanksgiving and Christmas, as spots could fill up quickly. And they may need to shop around if they can no longer get a direct flight to their destination.
Reports say service to the following cities was scheduled to drop the week of Oct. 2: (6)
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- Albuquerque, New Mexico
- Birmingham, Alabama
- Boise, Idaho
- Chattanooga, Tennessee
- Oakland, California
- Columbia, South Carolina
- Portland, Oregon
- Sacramento, California
- Salt Lake City
- San Diego
- San Jose, California
Service to Hartford, Connecticut, and Minneapolis are also reportedly on the chopping block, while plans to open a route to Macon, Georgia, were cancelled.
These actions may lead to increased demand for remaining flights. It could also create bottlenecks, particularly if bad weather is a factor.
When airlines are in trouble, there’s also a possibility they’ll abruptly cancel flights, so buyer beware. At the same time, there could be deals on offer as struggling airlines try to boost capacity and cover their operating costs. For example, Spirit Airlines announced a fall sale with flights as low as $44 one way. (7)
If you’re worried about airline uncertainty, travel insurance may be a smart investment for your holiday travel plans. Trip cancellation, interruption and other coverages could help offset losses if your trip is canceled or delayed.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Houston Chronicle (1); Bloomberg (2); CNBC (3); Reuters (4); Bank of America Institute (5); Business Insider (6); Spirit Airlines (7)
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Vawn Himmelsbach is a veteran journalist who has been covering tech, business, finance and travel for the past three decades. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, Metro News, Canadian Geographic, Zoomer, CAA Magazine, Travelweek, Explore Magazine, Flare and Consumer Reports, to name a few.
