Spirit Airlines said Monday it will delay delivery of new Airbus planes and furlough pilots to save money as it seeks to overcome several setbacks, including a blocked merger, engine problems and a weak recovery from the pandemic.
The budget airline said in a statement that the new measures will save the company $340 million over the next two years.
Spirit has made several changes aimed at cutting costs and improving its financial position since a federal judge in January blocked its plan to merge with JetBlue Airways. The judge ruled that the proposed deal would harm consumers. Spirit and JetBlue gave up trying to appeal that decision last month.
Spirit plans to delay most of the Airbus planes it expects to receive in 2025 and 2026 by about five years. It also said it expects to lay off about 260 pilots starting Sept. 1. Those changes will help Spirit, which has lost money in each of the last four years, return to profitability, the chief said. company executive Ted Christie.
“Delaying these aircraft gives us an opportunity to reset the business and focus on the core airline as we adjust to changes in the competitive environment,” Mr. Christie said in a statement.
The airline is also battling a problem affecting the engines that power the most popular plane in its all-Airbus fleet, the A320neo.
Last summer, Pratt & Whitney, which makes those engines, said it had discovered a manufacturing issue that would require them to be tested ahead of schedule, causing hundreds of planes to be taken out of service. in the next few years. Its parent company, RTX, said an average of 350 planes would be grounded from 2024 to 2026, at a cost to the manufacturer of about $3 billion.
Last month, Spirit reached an agreement to compensate Pratt & Whitney that will improve the airline’s liquidity by $150 million to $200 million.
Spirit struggled even before the engine issue was revealed. While most US airlines have had a relatively strong recovery from the coronavirus pandemic, some budget carriers, including Spirit, have had a tougher time due to intense competition and higher costs places where they operate.
