Spirit defers Airbus aircraft deliveries; furloughs 260 pilots

Spirit Airlines has deferred all of its aircraft on order with Airbus that were scheduled to be delivered from the second quarter of 2025 through to the end of 2026, and adjusts the delivery periods of option aircraft from 2027-2029 to 2029-2031. The agreement with Airbus is set to improve Spirit's liquidity position by approximately $340 million over the next two years. ""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 Spirit president and CEO Ted Christie. ""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."" Spirit has also furloughed approximately 260 pilots effective from September 1, 2024, as a result of the deferral and grounded aircraft from the GTF engine availability issues. Spirit recently entered into a compensation agreement with Pratt & Whitney in regards to the engine issues, which is estimated to improve its liquidity by around $150 to $200 million over the term of the agreement. Christie added: ""Unfortunately, we had to make the difficult decision to furlough pilots given the grounded aircraft in our fleet and our deferral of future deliveries. We are doing everything we can to protect team members, while balancing our responsibility to return to positive cash-flow and thrive as a healthy company with long-term growth prospects."" There are no changes to the aircraft on order with Airbus scheduled to be delivered in 2027-2029. Furthermore, the deferrals do not include the direct-lease aircraft scheduled for delivery in that period, one each in the second and third quarter 2025, respectively. Spirit said in a statement: ""The company has been taking, and will continue to take, prudent steps to ensure the strength of its balance sheet and ongoing operations, including assessing options to refinance upcoming debt maturities and bonds."" Spirit has retained Perella Weinberg & Partners and Davis Polk & Wardwell as advisors.