(Bloomberg) — Spirit Airlines Inc. is losing its chief financial officer to another troubled company — Hertz Global Holdings Inc. — as the carrier works to restructure a crushing debt load and the car rental company reboots after a failed bet on electric vehicles.
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Scott Haralson, who has been Spirit’s CFO since 2018, will take the same job at Hertz by the end of June, the companies said in separate statements Monday. He will join Gil West, another airline industry veteran, who is leading the car rental company as chief executive officer.
Spirit is in critical talks with bondholders to avoid bankruptcy by restructuring about $3 billion in debt and slashing costs after the collapse of its planned acquisition by JetBlue Airways Corp.
Haralson helped lead Spirit through the pandemic that widely gutted air travel as well as JetBlue’s planned $3.8 billion takeover before a federal judge scuttled it on antitrust grounds. The carrier also is in the midst of negotiating for additional compensation from RTX Corp. over a manufacturing defect in Pratt & Whitney engines that has grounded some Spirit planes.
Hertz is rebuilding after acquiring a fleet of mostly Tesla EV models that renters didn’t want and that cost more to repair than the company anticipated. Hertz also has been hurt by plummeting values for the EVs it bought after Tesla cut prices, resulting in higher-than-expected first-quarter losses of $392 million.
Spirit rose 2.6% to $3.74 as of 10:15 a.m. in New York. Hertz fell 5.3% to $4.13.
Read more: Hertz Shares Plunge to Record Low as It Unwinds Tesla Fleet
Hertz is exploring options to raise cash under West, a former chief operating officer at Delta Air Lines Inc. who joined Hertz in April after Stephen Scherr resigned as CEO.
Current Hertz CFO Alexandra Brooks is leaving “to pursue other opportunities,” the company said in a statement, and will stay on until the end of June as part of a transition. She had been appointed as finance chief in July, after having served as an interim CFO since April 2023. The car rental company also said COO Justin Keppy will leave effective Monday.
Haralson will remain at Spirit through June 14, when Brian McMenamy, currently vice president and controller, will succeed him as interim CFO. The carrier said it will hire an executive search firm to find a permanent replacement.
The airline has bled cash over much of the past two years as it contended with uneven demand, engine issues and higher costs plaguing the US domestic market. It’s already delayed aircraft deliveries, put some flight attendants on leaves with paid benefits and announced plans to furlough pilots starting Sept. 1.
Read more: Spirit Air Defers Plane Deliveries in Bid to Preserve Cash
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