Spirit Airlines has announced significant adjustments to its operations and fleet management strategy, including delaying aircraft deliveries and furloughing pilots, to enhance its financial stability. The budget carrier disclosed on Monday that it has secured an agreement with Airbus to postpone the delivery of all planes originally scheduled between the second quarter of 2025 and the end of 2026 to the years 2030 and 2031. This strategic move is expected to bolster the airline's liquidity by approximately $340 million over the coming two years.
Furthermore, Spirit Airlines will initiate a furlough for about 260 pilots starting from September 1, 2024. This decision is a direct consequence of the postponed aircraft deliveries and ongoing challenges with the availability of Pratt & Whitney Geared Turbofan (GTF) engines, which have already led to the grounding of several of Spirit’s A320neo aircraft. It is anticipated that the number of grounded jets will increase to an average of 40 by December 2024.
Ryan Muller, the head of Spirit's pilot union, acknowledged the surplus of pilots relative to the airline's current operational needs. He mentioned that the union is considering voluntary options to mitigate the impact of furloughs and downgrades on its members.
Additionally, Spirit Airlines has reached a financial compensation agreement with Pratt & Whitney concerning the GTF engines, expected to improve the airline's liquidity by $150 million to $200 million.
"This amendment to our agreement with Airbus is an important part of Spirit's comprehensive plan to bolster profitability and strengthen our balance sheet," said Ted Christie, President and Chief Executive Officer of Spirit. "Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment."
The airline clarified that the deferral will not affect the delivery schedule of planes slated for 2027 through 2029.
Furthermore, Spirit Airlines will initiate a furlough for about 260 pilots starting from September 1, 2024. This decision is a direct consequence of the postponed aircraft deliveries and ongoing challenges with the availability of Pratt & Whitney Geared Turbofan (GTF) engines, which have already led to the grounding of several of Spirit’s A320neo aircraft. It is anticipated that the number of grounded jets will increase to an average of 40 by December 2024.
Ryan Muller, the head of Spirit's pilot union, acknowledged the surplus of pilots relative to the airline's current operational needs. He mentioned that the union is considering voluntary options to mitigate the impact of furloughs and downgrades on its members.
Additionally, Spirit Airlines has reached a financial compensation agreement with Pratt & Whitney concerning the GTF engines, expected to improve the airline's liquidity by $150 million to $200 million.
"This amendment to our agreement with Airbus is an important part of Spirit's comprehensive plan to bolster profitability and strengthen our balance sheet," said Ted Christie, President and Chief Executive Officer of Spirit. "Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment."
The airline clarified that the deferral will not affect the delivery schedule of planes slated for 2027 through 2029.
Spirit Airlines to furlough 260 pilots, defer Airbus plane deliveries to help liquidity
Spirit Airlines announced that it will furlough 260 pilots and delay scheduled deliveries of Airbus planes.
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