Spirit Airlines to delay Airbus orders, furlough 260 pilots | Wilnesh News

spirit airlines It said on Monday it would delay deliveries of new Airbus planes and furlough some 260 pilots in an attempt to increase liquidity.

“Of course, these are not actions we wanted to take, but they are necessary to ensure Spirit has a strong and profitable future,” Chief Executive Ted Christie said in a note to employees on Monday. .

Spirit said it will postpone all Airbus aircraft it has ordered that were scheduled for delivery between the second quarter of 2025 and the end of 2026. It will receive the aircraft in 2030 and 2031. The delays do not include direct deliveries of leased aircraft – one each in the second and third quarters of next year – nor are they scheduled for delivery between 2027 and 2029, Spirit said.

The budget airline said the flight delays would add about $340 million in liquidity over the next two years.

“Delaying the delivery of these aircraft gives us the opportunity to realign our business and focus on our core airline while adapting to changes in the competitive environment,” Christie said in the release.

Miramar, Florida-based Spirit has been looking for ways to boost liquidity and reassure investors it is working to achieve that goal as many of its Airbus planes are hobbled by the grounding. Pratt & Whitney Engine recall.Its planned acquirer is JetBlue Airways The deal fell apart earlier this year after a federal judge ruled in January that the deal was anticompetitive.

The airline said on March 29 that it would receive monthly compensation for grounded Pratt & Whitney engines through the end of 2024, which would increase liquidity by $150 million to $200 million.

Spirit said Monday the pilot furloughs will take effect in September. The Association of Flight Attendants told members on Monday that the airline has furloughed flight attendants and has “no plans” to furlough crew members. Spirit Airlines will close its crew base in Atlantic City, New Jersey, and employees will be reassigned.

Other airlines have also adjusted recruiting and training in recent weeks, citing the scarcity of planes — a dramatic change from a pilot shortage that worsened after travel demand rebounded during the worst of the pandemic. United Airlines The pilots union said late last month that the company would provide pilots with unpaid leave next month due to delayed flights. boeing company.

The airline pilots association, Spirit Pilots Union, did not immediately comment on the furloughs.