Spirit Airlines said Monday that it is delaying Airbus plane deliveries and furloughing hundreds of pilots starting this fall to boost profitability and strengthen its balance sheet.
The low-cost carrier said it reached an agreement with Airbus to "defer all aircraft on order that are scheduled to be delivered in the second quarter of 2025 through the end of 2026 to 2030-2031."
Spirit said it projects the agreement will boost its liquidity position by $340 million over the next two years.
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"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," CEO Ted Christie said. "In addition, enhancing our liquidity provides us additional financial stability as we position the company for a return to profitability."
Due to the deferrals, along with the grounded aircraft due to Pratt & Whitney GTF engine availability issues, the company said it plans to furlough approximately 260 pilots starting Sept. 1.
Spirit has already entered into a compensation agreement with Pratt & Whitney regarding its GTF engines, which is also slated to improve Spirit's liquidity between $150 million and $200 million over the term of that agreement.
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Also, the carrier also announced that it will continue to "evaluate the use of its current financeable asset base to add additional liquidity over the coming months."
Spirit has tried to address its financial challenges following a failed deal with JetBlue.
In March, both carriers agreed to terminate their $3.8 billion merger agreement after facing significant regulatory and legal hurdles.
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Christie also argued that the deal "would save hundreds for millions for consumers and create a real challenger to the dominant ‘Big 4’ U.S. airlines."
Despite this setback, Christie said he remained confident in the company's future as a "successful independent airline."
