Spirit Airlines 2025: Jet Delivery Delays and Pilot Furloughs to Save $340M
In 2025, Spirit Airlines partners with Airbus to postpone jet deliveries and furlough 260 pilots, aiming to improve liquidity by $340 million and reinforce financial stability amid industry challenges.
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Highlights
- Spirit Airlines delays Airbus jet deliveries from 2025 through 2031 to reduce costs.
- These deferrals are expected to enhance the airline’s liquidity by approximately $340 million within two years.
- As a result, Spirit plans to furlough about 260 pilots starting September 2024.
- Despite ongoing stock challenges, shares rose over 4% following the announcement.
In a strategic move to improve its financial health, Spirit Airlines (SAVE) has agreed with Airbus to defer the delivery of scheduled passenger jets from the second quarter of 2025 through 2031. This agreement is designed to significantly cut expenses and boost the airline’s cash flow during a turbulent period.
The delay in aircraft deliveries, compounded by existing engine-related setbacks with the Airbus A320neo fleet, has compelled Spirit to furlough 260 pilots effective September 1, 2024. This decision aligns with the carrier’s efforts to adjust operations amid a shifting competitive landscape.
CEO Ted Christie emphasized that the revised Airbus contract is a crucial step toward strengthening Spirit’s balance sheet and profitability. He noted the importance of refocusing on core airline operations to navigate current industry headwinds effectively.
While acknowledging the difficulty of furloughs, Christie conveyed to employees that these actions are vital for ensuring a sustainable and profitable future for the airline.
This financial recalibration follows the collapse of a $3.8 billion merger deal with JetBlue earlier this year, a move initially set to create the fifth-largest U.S. airline but blocked by regulators.
Spirit's stock gained 4.5% to $4.63 by early afternoon trading on Monday, though it remains down 70% year-to-date amid ongoing market pressures.
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