A Spirit Airways plane undergoes functions in planning for departure at the Austin-Bergstrom Intercontinental Airport on February 12, 2024 in Austin, Texas.
Brandon Bell | Getty Visuals
Spirit Airways mentioned Monday that it will defer deliveries of new Airbus planes and furlough about 260 pilots as it tries to enhance liquidity.
“Of system, these techniques aren’t types we want to consider but they are essential to assure a strong and rewarding long run for Spirit,” CEO Ted Christie explained in a note to workers on Monday.
Spirit claimed it will defer all Airbus planes it has on purchase that were being scheduled to be delivered for the 2nd quarter of 2025 by the end of 2026. It will in its place consider shipping and delivery of them in 2030 and 2031. The deferrals do not contain the direct-lease planes — one apiece in the second and third quarter of future 12 months — nor scheduled deliveries for 2027 by 2029, Spirit stated.
The price range airline reported the deferrals would raise its liquidity by about $340 million around the subsequent two several years.
“Deferring these plane gives us the prospect to reset the business and concentrate on the core airline when we regulate to improvements in the aggressive environment,” Christie explained in a news release.
Miramar, Florida-primarily based Spirit has been seeking for ways to increase liquidity and persuade investors that it is on keep track of to do so as it struggles with the the grounding of lots of of its Airbus planes because of a Pratt & Whitney motor recall. Its prepared acquisition by JetBlue Airways fell apart previously this year right after a federal judge ruled in January that the deal would be anticompetitive.
The airline claimed on March 29 that it will receive month-to-month payments in compensation for the grounded Pratt & Whitney engines as a result of the conclusion of 2024, which would elevate liquidity among $150 million and $200 million.
The pilot furloughs would choose impact in September, Spirit said Monday. The airline currently experienced leaves of absence in put for flight attendants and there is “no plan” for cabin crew furloughs, their union, the Association of Flight Attendants instructed users on Monday. Spirit is closing its Atlantic Metropolis crew foundation and employees will be reassigned.
Other airlines have altered their using the services of and instruction in recent weeks, citing a shortage of aircraft — a sharp transform from the pilot shortage that worsened when journey demand snapped back again right after the worst of the pandemic. United Airways pilots’ union late past month reported the business is offering unpaid time off for pilots future thirty day period mainly because of late-arriving planes from Boeing.
The Air Line Pilots Affiliation, Spirit pilots’ union, did not right away remark on the furloughs.
