Spirit Airlines said Monday it would delay deliveries of new Airbus planes and furlough pilots to save money as it overcomes several challenges, including a blocked merger, engine problems and a lackluster recovery from the pandemic. did.
The low-cost airline said in a statement that the new measures will save it $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 blocked its planned merger with JetBlue Airways in January. The judge ruled that the proposed deal would harm consumers. Spirit and JetBlue abandoned efforts to appeal the decision last month.
Spirit plans to delay most of its Airbus planes, which it had expected to receive in 2025 and 2026, by about five years. He also said the airline plans to furlough about 260 pilots starting Sept. 1. Those changes will help Spirit return to profitability after losing money in each of the past four years, said CEO Ted Christie.
“The postponement of these aircraft provides us with an opportunity to reset our business and focus on our core airlines while adapting to a changing competitive environment,” Christie said in a statement.
The company is also grappling with an issue affecting the engines that power the A320neo, the most popular aircraft in Airbus' fleet.
Pratt & Whitney, which makes these engines, announced last summer that it had discovered a manufacturing problem that required inspection well ahead of schedule and could ground hundreds of planes over the next few years. He predicted that this would happen. Parent company RTX said an average of 350 aircraft will be grounded between 2024 and 2026, costing manufacturers about $3 billion.
Last month, Spirit reached an agreement with Pratt & Whitney that would improve the airline's liquidity by $150 million to $200 million.
Spirit was struggling even before the engine problems became apparent. While many U.S. airlines have had a relatively strong recovery from the coronavirus pandemic, some low-cost carriers, including Spirit, are facing tougher conditions due to intense competition and higher costs in the locations they operate. There is.