Budget air-carrier Spirit informed the state of Florida on Monday that it might lay off up to 1,583 workers due to a contract dispute. Spirit has been in negotiations with its pilots, who on average make 10% less than their counterparts at other budget airlines, for almost three years. The pilots recently rejected an offer of binding arbitration from the National Mediation Board. Layoffs could start June 12 if an agreement is not reached.

Low-cost carriers like Spirit have been a bright spot in an otherwise troubled industry. In 2009, Spirit reported an operating profit of $107 million on $699 revenue. Most of the major carriers, such as Delta and American, reported losses in 2009.