Spirit Airlines Defers Airbus Aircraft Deliveries – Airways

DALLAS — Spirit Airlines (NK) and Airbus have agreed to defer for five years the delivery of all aircraft on order scheduled for 2025-2026.These deliveries will now take place between 2030 and 2031.

This deferral does not include the direct-lease aircraft scheduled for delivery during the initial period. The agreement with Airbus is expected to improve NK’s liquidity by approximately US$340 million over the next two years.

Due to grounded aircraft due to Pratt & Whitney GTF engine availability issues and the deferral of aircraft deliveries in 2025 and 2026, NK intends to furlough approximately 260 pilots effective September 1, 2024.

Spirit has also entered into a compensation agreement with Pratt & Whitney regarding its GTF engines, which is estimated to improve NK’s liquidity by US$150 million to US$200 million over the agreement’s term. Additionally, NK will continue to explore options to add liquidity by utilizing its current financeable asset base.

The airline aims to focus on its core airline operations and adjust to changes in the competitive environment. The deferral of aircraft deliveries and the compensation agreement with Pratt & Whitney are part of NK’s comprehensive plan to bolster profitability and strengthen its balance sheet.

Featured image: N970NK, Spirit Airlines Airbus A320neo. Photo: Michael Rodeback/Airways