Spirit said the decisions were made to improve its long-term financial future. Credit: Byron Ortiz / Shutterstock

Spirit Airlines, the US carrier that recently had its proposed merger with JetBlue blocked on competition grounds, said it has agreed to defer its current aircraft orders with Airbus from 2025 to 2030. 

The airline said the deferral deal had been struck in order to “improve Spirit’s liquidity”. CEO Ted Christie described the action as a “reset” for Spirit’s business and bottom line. 

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

“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. In addition, enhancing our liquidity provides us additional financial stability as we position the Company for a return to profitability,” he explained in a company statement. 

But in a further blow to US pilots, Spirit said it would furlough 260 pilots from September due to a number of its jets being grounded by ongoing Pratt & Whitney GTF engine issues. The furloughs will come into effect at the beginning of September 2024.

The announcement followed United Air Lines declaring it was pausing all hiring, and even asking contracted pilots to take unpaid leave due to delayed delivery of its Boeing 737 MAX 10’s. 

Spirit said it had agreed compensation with Pratt & Whitney which it said would improve the airline’s financial position by between $150m and $200m. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

While Christie said the furlough and deferrals were “difficult decisions” he added they were made for the long-term financial health of the company.

“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,” he explained. 

But Spirit said there was “no change” to the total aircraft on order from the European plane makers, and the orders scheduled for 2027-29 were not affected. 

The deferral is estimated to “improve Spirit’s liquidity position by approximately $340m over the next two years.”