Spirit Airlines Defers Airbus Plane Deliveries and Announces Pilot Furloughs

A Spirit Airlines aircraft undergoes operations in preparation for departure at the Austin-Bergstrom International Airport on February 12, 2024 in Austin, Texas.

Spirit Airlines takes strategic steps to ensure long-term success

Spirit Airlines, the renowned low-cost carrier, has recently made important decisions to bolster its financial position and reinforce its commitment to a profitable future. As part of its strategy to enhance liquidity, the airline has chosen to defer the delivery of new Airbus planes and implement pilot furloughs, providing stability and flexibility in an ever-evolving aviation industry.

Delays in Airbus plane deliveries

By carefully assessing its short-term priorities, Spirit Airlines has opted to defer deliveries of Airbus planes originally scheduled for the second quarter of 2025 through the end of 2026. Instead, the airline plans to receive these aircraft in 2030 and 2031. Notably, this decision excludes planes obtained through direct lease agreements for the second and third quarter of next year, as well as scheduled deliveries for the period 2027-2029.

By deferring these aircraft, this leading budget airline anticipates a liquidity boost of approximately $340 million over the next two years. This strategic move will enable Spirit Airlines to refocus its core operations and navigate the evolving competitive landscape effectively.

CEO reassures staff of Spirit Airlines’ bright future

Acknowledging the necessity of these measures, Spirit Airlines CEO, Ted Christie, emphasized the importance of these actions for the long-term prosperity of the company. Christie stated in a note to staff, “Of course, these steps aren’t ones we want to take, but they’re necessary to ensure a strong and profitable future for Spirit.”

Challenges faced by Spirit Airlines

Breadcrumb by breadcrumb, Spirit Airlines continues to weather various challenges. The grounding of several Airbus planes, resulting from a recall of Pratt & Whitney engines, has significantly impacted the airline. Additionally, the much-anticipated acquisition by JetBlue Airways dissolved earlier this year. blocked by a federal judge on the grounds of anticompetitiveness.

To offset the financial implications caused by the engine recall, Spirit Airlines recently confirmed it would receive monthly payments through the end of 2024, estimated to provide $150-200 million in increased liquidity. These strategic measures enable the airline to adapt, consolidate, and sustain operations efficiently.

Implications of pilot furloughs

To align operations with the current economic climate, Spirit Airlines plans to furlough approximately 260 pilots starting in September. The company states that this reduction in pilot manpower, while challenging, is a necessary step to control costs and streamline operations. Notably, the airline ensures there are no current plans for furloughs affecting cabin crew, with flight attendants already placed on leaves of absence.

Many airlines are addressing similar challenges in the industry. United Airlines recently offered unpaid time off for pilots due to delays in Boeing plane deliveries, highlighting the global scarcity of aircraft within the industry.

The Air Line Pilots Association, the pilots’ union representing Spirit Airlines, is yet to comment on the furlough announcement.