Spirit Airlines' stock price surges by 25% following the announcement of selling aircraft and job cuts.

• Next year, Spirit Airlines intends to reduce its workforce, sell aircraft, and decrease its size.
• The airline is facing challenges due to a failed acquisition, an engine recall, and an overabundant U.S. market.
• Spirit shares are still down about 80% this year.

After the struggling budget airline announced job cuts and aircraft sales, shares surged.

Spirit Airlines announced on Thursday that it plans to sell 23 older Airbus aircraft to reduce costs and increase cash flow, generating $519 million in revenue.

The company announced that it will cut jobs and reduce costs by approximately $80 million.

The airline delayed the deadline to refinance more than $1 billion in debt until late December, giving it breathing room with its credit card processor.

The pandemic has caused difficulties for Spirit in regaining profitability, with a change in travel demand and the grounding of many powered aircraft.

Despite Friday's increase, Spirit's shares have still fallen over 80% this year due to a judge's decision to halt its acquisition by.

Spirit Airlines did not immediately disclose the number of employees it will cut, but stated that its 2025 capacity will be down in the mid-teen percentage range compared to this year. The airline began furloughing about 200 pilots in September. Flight attendants are well-positioned because many crew members took voluntary leaves of absence, according to the company.

This week, The Wall Street Journal reported that Spirit Airlines and Frontier Airlines have resumed merger talks, causing stock prices to rise. The airlines did not provide immediate comment. In April 2022, Frontier Airlines' offer to purchase Spirit Airlines outright derailed their merger agreement.

On Thursday, Spirit announced a forecast for a negative third-quarter operating margin of 24.5%, which is better than their previous estimate of a negative 29% margin for the three-month period.