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Spirit Airlines stock jumps as carrier plans to sell planes, cut jobs [Video]

Spirit Airlines baggage tags are seen near a check-in counter at the Austin-Bergstrom International Airport on April 10, 2024 in Austin, Texas. 

Brandon Bell | Getty Images

Spirit Airlines shares surged Friday after the struggling budget carrier said it would cut jobs and sell aircraft.

The stock closed the day 16% higher, at $2.79 per share.

The carrier late Thursday laid out a plan to reduce costs and raise cash by selling 23 older Airbus aircraft. That sale will bring in $519 million, Spirit said in a securities filing.

It also said it will reduce costs by about $80 million, mostly through job cuts.

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

Spirit has struggled to return to profitability in the wake of the pandemic, facing a shift in travel demand and the grounding of dozens of Pratt & Whitney powered aircraft.

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