A Spirit Airlines aircraft undergoes operations in preparation for departure at Austin-Bergstrom International Airport on February 12, 2024 in Austin, Texas.
Brandon Bell | Getty Images
Spirit Airlines said on Monday it would delay deliveries of new Airbus planes and furlough about 260 pilots as it tries to boost liquidity.
“Of course, these steps are not what we want to do, but they are necessary to ensure a strong and profitable future for Spirit,” CEO Ted Christie said in a memo to staff Monday.
Spirit said it will postpone all Airbus planes it has on order that were scheduled for delivery from the second quarter of 2025 to the end of 2026. Instead, it will deliver them in 2030 and 2031. The postponements do not include direct leases planes — one each in the second and third quarters of next year — and no scheduled deliveries for 2027 through 2029, Spirit said.
The budget airline said the deferrals would boost its liquidity by about $340 million over the next two years.
“Deferring these aircraft gives us an opportunity to realign the business and focus on our core airline while we adapt to changes in the competitive environment,” Christie said in a press release.
Miramar, Fla.-based Spirit is looking for ways to boost liquidity and convince investors it is on track to do so as it struggles with the grounding of many of its Airbus planes due to Pratt & Whitney engine recall. Its planned acquisition by JetBlue Airways collapsed earlier this year after a federal judge ruled in January that the deal would be anticompetitive.
The airline said on March 29 that it would receive monthly payments as compensation for the retired Pratt & Whitney engines through the end of 2024, which would raise liquidity by between $150 million and $200 million.
The pilot licenses will take effect in September, Spirit said Monday. The airline already had leaves of absence for flight attendants, and there is “no plan” for cabin crew leaves, their union, the Flight Attendants Association, told members on Monday. Spirit is closing its Atlantic City, New Jersey, crew base and staff will be relocating.
Other airlines have adjusted their hiring and training in recent weeks, citing a shortage of aircraft – a sharp shift from a pilot shortage that worsened when travel demand slumped after the worst of the pandemic. united airlines The pilots’ union late last month said the company was offering unpaid leave to pilots next month due to late arrivals of planes from Boeing.
The Air Line Pilots Association, the Spirit pilots’ union, said Monday it is exploring voluntary measures that could limit the number of pilot licenses.
“Combined with the retirement of our A319 fleet and the ongoing issue with the Pratt & Whitney GTF engine, the airline finds itself with more pilots than its operations require,” Ryan Muller, president of the Spirit ALPA chapter, said in a statement sent by email. “The implications of the Company’s announced decision are deeply troubling to our entire pilot team.”
Spirit said in the filing that it plans to release its next financial outlook for the quarter and full year within the next week. It is scheduled to report first-quarter results before the market opens on May 6.