Spirit Airlines to Cut 260 Pilot Jobs as Part of Financial Restructuring Strategy

Today, Spirit Airlines, Inc. stated that it has achieved a deal with Airbus to push back all order aircraft from the second quarter of 2025 through the end of 2026 to 2030–2031.

The direct-lease aircraft, one for each of the second and third quarters of 2025, that are slated for delivery during that time are not included in these deferrals. Over the next two years, Spirit’s cash situation will strengthen by about $340 million through the agreement with Airbus.

The aircraft that are currently being ordered from Airbus and slated for delivery in 2027–2029 have not changed. Spirit revealed that it will be furloughing about 260 pilots as of September 1, 2024, as a result of aircraft grounded due to Pratt & Whitney GTF engine availability issues as well as the aircraft deferrals for 2025 and 2026.

Spirit and Pratt & Whitney recently stated that they have reached a compensation deal over Spirit’s GTF engines. Over the course of the agreement, spirit airlines furlough is expected to have improved liquidity by $150 million to $200 million. In the upcoming months, Spirit will also keep an eye on how best to use its present base of financeable assets to add further liquidity.

Additionally, Spirit’s purchase agreement’s optional aircraft had their exercise dates postponed by two years due to the Airbus change. The total number of aircraft ordered remains unchanged, nor do Spirit’s options for more aircraft.The Company has been and will keep implementing sensible measures to guarantee the stability of its balance sheet and continuing business operations. These measures include evaluating potential refinancing options for bonds and upcoming debt maturities.