Spirit Airlines Says Operational Meltdown Cost It About $50 Million


Spirit Airlines has said that its massive flight disruptions in recent weeks that affected tens of thousands of customers and caused chaos at airports all around America could cost it about $50 million in revenue.

The discount carrier said it’s making “tactical schedule reductions” for the rest of the third quarter to soften the blow from staffing shortfalls. Spirit cancelled more than 2,800 flights between July 30 and Aug. 9, citing staffing shortages, bad weather and technical problems. The U.S. Transportation Department said it “has reminded Spirit of its legal obligations, including its obligation to provide prompt refunds when it cancels or significantly changes a flight and the passenger chooses not to accept the alternative offered. Shares of the Miramar, Florida-based airline were down less than 1% in late-morning trading on Tuesday.

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