Spirit Airlines Told Workers to “Ignore the Rumors” Days Before Closing and Cutting 17,000 Jobs; Now They’re Sued
Thousands of Spirit Airlines employees were taken by surprise when the budget airline unexpectedly ceased operations—and now a collective of them is taking legal action.
Six former employees of Spirit Airlines have initiated a proposed class-action lawsuit in the U.S. Bankruptcy Court for the Southern District of New York, claiming that the airline owes them wages and benefits after its sudden closure on May 2. The abrupt closure left approximately 17,000 employees without jobs immediately.
The collapse of Spirit had been developing for several months. The airline faced significant financial difficulties and sought Chapter 11 bankruptcy protection in late 2024, aiming to reorganize its debt and chart a course for recovery. Following a failed merger deal and the inability to secure new financing, the company ultimately announced the cessation of all operations, grounding its fleet and leaving passengers stranded at airports nationwide.
The lawsuit focuses on purported breaches of the WARN Act—the Worker Adjustment and Retraining Notification Act of 1988—which mandates that companies with over 100 employees provide a minimum of 60 days’ notice prior to mass layoffs. Employees who do not receive that notice may be entitled to as much as 60 days of back pay and benefits.
The lawsuit is notably sharp due to the allegation that senior leadership actively dissuaded employees from anticipating the worst outcomes. On April 16, merely two weeks prior to the shutdown, management reportedly instructed employees to “disregard the rumors that Spirit was approaching a termination point.”
Compounding the frustration, certain employees report that they have yet to receive their final paychecks, even as Spirit pursued court approval for $10.7 million in bonuses aimed at retaining executives.
“This case is crucial in advocating for the rights of Spirit Airlines employees who unexpectedly lost their jobs,” stated attorney Eric Lechtzin, representing the plaintiffs. “Our dedication lies in securing the compensation mandated by law and ensuring that Spirit is held accountable.”
A spokesperson for Spirit informed PEOPLE that final paychecks are currently “in process” as an audit is being conducted. They added, “The company is finalizing these paychecks as soon as possible and will process payroll once the audit is complete.”
