Austin, Texas – Spirit Airlines, a budget airline based in Miramar, Florida, announced on Monday its decision to defer deliveries of new Airbus planes and furlough approximately 260 pilots in an effort to strengthen its financial position.
CEO Ted Christie expressed the necessity of these measures, stating that they are crucial for ensuring the company’s long-term success and profitability. The airline disclosed that it will be deferring the delivery of Airbus planes scheduled for the second quarter of 2025 through the end of 2026 to 2030 and 2031 to improve liquidity by approximately $340 million over the next two years.
The airline’s struggles with the grounding of several Airbus planes due to a Pratt & Whitney engine recall have led to the need for these actions. Moreover, Spirit’s planned acquisition by JetBlue Airways earlier this year was halted by a federal judge’s ruling in January, citing concerns about competitiveness.
In addition to the pilot furloughs set to take effect in September, Spirit has already implemented leaves of absence for flight attendants, with no plans for cabin crew furloughs. The Association of Flight Attendants has assured members that the airline will be reassigning staff from its Atlantic City crew base, which is set to close.
Similar challenges have been faced by other airlines, with United Airlines recently offering unpaid time off for pilots due to delays in aircraft deliveries from Boeing. The Air Line Pilots Association, representing Spirit pilots, has not yet provided a statement regarding the furloughs.
Overall, Spirit’s strategic decisions to defer plane deliveries and implement pilot furloughs aim to navigate the current challenges in the airline industry and position the company for a more stable and profitable future.