Spirit Airlines on Monday reached an agreement with Airbus to postpone all aircraft deliveries scheduled from the second quarter of 2025 to 2026, with the U.S. airline cutting back about 260 pilots as it seeks to save money. announced that they are planning to furlough employees.
The low-cost carrier announced it would postpone scheduled deliveries from 2030 to 2031. As a result of the postponement, in addition to quality issues with its supplier Pratt & Whitney engines, Spirit will furlough its pilots starting September 1.
Spirit stock closed 7% higher at $4.72 on Monday.
Problems with Pratt & Whitney Geared Turbofan (GTF) engines have forced Spirit to ground some of its A320neo aircraft, pushing the already cash-strapped airline into a tailspin.
The agreement with Airbus will improve Spirit’s liquidity by approximately $340 million over the next two years, the company said, adding that there will be no changes to orders scheduled for delivery between 2027 and 2029.
“Aircraft deferrals and pilot furloughs look positive in that they will help reduce (or defer) some of the airline’s costs. However, among other factors, this airline’s revenue “This could reduce the number of opportunities created,” Citi Research analyst Stephen Trent wrote in a note.
Spirit, which has been losing money for several quarters despite strong travel demand, operates an entirely Airbus fleet. As of December 2023, the company has a total of 205 Airbus aircraft.
Spirit currently expects to end 2025 with no additional A320neo aircraft and a total fleet of 219 jets. The airline previously expected to add six A320neos in 2025, increasing its fleet to 234 aircraft.
Ryan Mueller, chairman of the Spirit Master Executive Council of the Airline Pilots Association (ALPA), said the furloughs are “very concerning for the pilot group as a whole.”
Mueller added that the council and bargaining committee are exploring voluntary measures that could reduce the need or number of furloughs and downgrades.
