By Debora Maria Sofia
(Reuters) – Spirit Airlines said on Monday it had reached a deal with Airbus to delay all scheduled plane deliveries from the second quarter of 2025 to 2026 and would lay off about 260 pilots as the U.S. airline looks to save money.
The low-cost airline said it will postpone scheduled deliveries to 2030-2031. As a result of the postponements, along with quality issues with engines made by supplier Pratt & Whitney, Spirit will place pilots on leave starting September 1.
Spirit shares rose about 5% in early trading.
A snag with its Pratt & Whitney Geared Turbofan (GTF) engines has forced Spirit to ground some of its A320neo planes, putting the company in trouble at a time when it is already grappling with a liquidity crisis.
The deal with Airbus would improve Spirit’s liquidity by about $340 million over the next two years, the carrier said, adding that there were no changes to its orders scheduled for delivery in the 2027-2029 period.
“(The) deferrals of aircraft and pilot furloughs appear positive, in terms of helping the carrier reduce (or) defer some costs. However, among other factors, the carrier now also potentially reduces its revenue generation opportunities, ” Citi Research analyst Stephen Trent wrote in a note.
Spirit, which has been losing money for several quarters despite strong travel demand, operates an all-Airbus fleet. As of December 2023, the company had a total of 205 Airbus jets.
Spirit now expects to end 2025 with a total of 219 jets in its fleet, without the addition of the A320neo aircraft. It had previously planned to add six A320neo jets in 2025 and increase its fleet to 234 jets.
The furloughs “are deeply concerning for our entire pilot group,” said Ryan Muller, president of Spirit’s Master Executive Council at the Air Line Pilots Association (ALPA).
The board and a negotiating committee are exploring voluntary measures that could mitigate the need for, or the number of, furloughs and downgrades required, Muller added.