1 month ago
Spirit Airlines said Monday that it is delaying Airbus level deliveries and furloughing hundreds of pilots starting this autumn to boost profitability and fortify its equilibrium sheet.
The low-cost bearer said it reached an statement pinch Airbus to "defer each craft connected bid that are scheduled to beryllium delivered successful nan 2nd 4th of 2025 done nan extremity of 2026 to 2030-2031."
Spirit said it projects nan statement will boost its liquidity position by $340 cardinal complete nan adjacent 2 years.
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"Deferring these craft gives america nan opportunity to reset nan business and attraction connected nan halfway hose while we set to changes successful nan competitory environment," CEO Ted Christie said. "In addition, enhancing our liquidity provides america further financial stableness arsenic we position nan institution for a return to profitability."
A Spirit Airlines level lands astatine Harry Reid International Airport successful Las Vegas. (Photo by Justin Sullivan/Getty Images / Getty Images)
Due to nan deferrals, on pinch nan grounded craft owed to Pratt & Whitney GTF motor readiness issues, nan institution said it plans to furlough astir 260 pilots starting Sept. 1.
Spirit has already entered into a compensation statement pinch Pratt & Whitney regarding its GTF engines, which is besides slated to amended Spirit's liquidity betwixt $150 cardinal and $200 cardinal complete nan word of that agreement.
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Spirit has already entered into a compensation statement pinch Pratt & Whitney regarding its GTF engines. (Spirit Airlines / Fox News)
Also, nan bearer besides announced that it will proceed to "evaluate nan usage of its existent financeable plus guidelines to adhd further liquidity complete nan coming months."
Spirit has tried to reside its financial challenges pursuing a grounded woody pinch JetBlue.
| SAVE | SPIRIT AIRLINES INC. | 4.62 | +0.20 | +4.40% |
| JBLU | JETBLUE AIRWAYS CORP. | 6.80 | +0.01 | +0.15% |
In March, some carriers agreed to terminate their $3.8 cardinal merger statement aft facing important regulatory and ineligible hurdles.
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Christie besides based on that nan woody "would prevention hundreds for millions for consumers and create a existent challenger to nan ascendant ‘Big 4’ U.S. airlines."
Despite this setback, Christie said he remained assured successful nan company's early arsenic a "successful independent airline."
