WASHINGTON, July 29 (Xinhua) -- U.S. budget airlines like Spirit and Southwest have chosen to lay off pilots, cut flights and change business models for survival in a hard time of rising costs and shrinking markets.

Spirit Airlines on Monday announced that 270 pilots will be furloughed this fall, with another 140 pilots downgraded to the position of first officer from captain starting Oct. 1, CNBC reported.

"We know how hard this news hits, and there's no dressing that up. Spirit continues to shrink, and with it, the value of pilot seniority and Spirit careers continues to erode," said Captain Ryan Muller, head of Spirit's pilot union, quoted by CNBC.

The furloughs are slated to begin Nov. 1, in a bid to "better align staffing with our flight schedule," the airline said in a statement.

Spirit recently has emerged from its financial restructuring following its November 2024 bankruptcy filing, which came after several years of losses. The carrier has been trying to woo customers with more upscale travel options, after years of being known for offering mostly basic services.

Spirit's announcement came as carriers nationwide face dwindling demand, specifically during the off-season. Moreover, analysts say there are signs that the post-COVID travel rebound is slowing amid high inflation and economic uncertainty.

Facing persistent challenges, low-cost carriers like Southwest, JetBlue, Frontier and Spirit have been forced to adapt their strategies.

Beginning Tuesday, Southwest fliers need to select seats when booking flights beyond Jan. 27, 2026, a change of its unique open seating policy that has lasted more than five decades and helped it build a loyal following of customers.

Southwest Airlines saw its shares fall more than 11 percent on Wednesday after the company published earnings and revenues in the second quarter, which fell short of analysts' predictions following a general trend of falling demand in recent weeks.

The carrier said it would slash flights during off-season periods as airlines face fewer bookings for flights within the United States. In February, the company decided to cut 15 percent of its staff, or about 1,750 people, as the company scrambled to cut costs, according to U.S. media reports.

The carrier has been changing its business model, doing away with long-standing policies such as allowing two check-in bags for free and open seating, the airline said on Monday.

"We continued to make meaningful progress against our transformational plan in the second quarter, most notably implementing bag fees and a basic economy product," said Bob Jordan, CEO of Southwest Airlines, who also mentioned the change to sell assigned and premium seating.

Faced with sluggish demand for low-cost flights, airlines are likely to explore opportunities in top-end travel, where premium luxury passengers remain a more reliable source of revenues. ■