A Spirit Airways plane undergoes operations in preparation for departure on the Austin-Bergstrom Worldwide Airport on February 12, 2024 in Austin, Texas.
Brandon Bell | Getty Photos
Spirit Airways stated Monday that it’s going to defer deliveries of latest Airbus planes and that it plans to furlough about 260 pilots because it tries to spice up liquidity.
“After all, these steps aren’t ones we need to take however they’re essential to make sure a powerful and worthwhile future for Spirit,” CEO Ted Christie stated in a be aware to employees Monday.
Spirit stated it should defer all Airbus planes it has on order that have been scheduled to be delivered from the second quarter of 2025 by way of the tip of 2026. It is going to as a substitute take supply of them in 2030 and 2031. The deferrals don’t embody the direct-lease planes — one apiece within the second and third quarter of subsequent yr — nor scheduled deliveries for 2027 by way of 2029, Spirit stated.
The funds airline stated the deferrals would increase its liquidity by about $340 million over the subsequent two years.
“Deferring these plane offers us the chance to reset the enterprise and give attention to the core airline whereas we alter to modifications within the aggressive surroundings,” Christie stated in a information launch.
Miramar, Florida-based Spirit has been searching for methods to spice up liquidity and persuade buyers that it’s on monitor to take action because it struggles with the the grounding of a lot of its Airbus planes due to a Pratt & Whitney engine recall. Its deliberate acquisition by JetBlue Airways fell aside earlier this yr after a federal decide dominated in January that the deal could be anti-competitive.
The airline stated March 29 that it’s going to obtain month-to-month funds in compensation for the grounded Pratt & Whitney engines by way of the tip of 2024, which might carry liquidity between $150 million and $200 million.
The pilot furloughs would take impact in September, Spirit stated Monday. The airline already had leaves of absence in place for flight attendants and there may be “no plan” for cabin crew furloughs, their union, the Affiliation of Flight Attendants advised members Monday. Spirit is closing its Atlantic Metropolis, New Jersey, crew base and employees shall be reassigned.
Spirit’s Airbus supply slots are prone to be in excessive demand. Airways have adjusted their hiring and coaching in current weeks, citing a shortage of plane — a pointy change from the pilot scarcity that worsened when journey demand snapped again after the worst of the pandemic.
United Airways pilots’ union final month stated the corporate is providing unpaid break day for pilots subsequent month due to late-arriving planes from Boeing. The service stated it was additionally eradicating Boeing’s Max 10 jets from its fleet plan as a result of it was unclear when regulators would certify the planes. United declined to touch upon whether or not it should take Spirit’s Airbus supply slots.
An Airbus spokeswoman stated the slots might be remarketed, however she declined to touch upon “any conversations we might or will not be having with numerous prospects.”
The Air Line Pilots Affiliation, Spirit pilots’ union, stated Monday it’s exploring voluntary measures that would restrict the variety of pilot furloughs.
“Coupled with the retirement of our A319 fleet and the continued Pratt & Whitney GTF engine situation, the airline finds itself with extra pilots than its operations require,” Ryan Muller, chairman of the Spirit ALPA chapter, stated in an emailed assertion. “The ramifications of the Firm’s introduced choice are deeply troubling for our complete pilot group.”
Spirit stated within the submitting that it plans to publish its subsequent monetary outlook for the quarter and full yr throughout the subsequent week. It’s scheduled to report first-quarter outcomes earlier than the market opens on Might 6.
