Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.

Spirit Airlines has announced that it will delay the delivery of new Airbus planes initially scheduled for 2025 through 2026 and will furlough approximately 260 pilots.

This move is part of a broader initiative to enhance the airline’s financial health. In an agreement with Airbus, the deliveries have been postponed until 2030-2031, an adjustment expected to boost Spirit’s liquidity by around $340 million over the next couple of years.

“This amendment to our agreement with Airbus is an important part of Spirit’s comprehensive plan to bolster profitability and strengthen our balance sheet,” stated Ted Christie, President and CEO of Spirit Airlines. He added, “Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment.”

The decision to furlough pilots from September 1 stems from not only the deferment of aircraft but also due to quality and availability challenges with engines from Pratt & Whitney. Christie expressed regret over the necessity of this move, saying, “Unfortunately, we had to make the difficult decision to furlough pilots given the grounded aircraft in our fleet and our deferral of future deliveries.”

Following these announcements, Spirit’s stock witnessed a 4% increase during early trading. Despite this positive market reaction, the airline’s shares have declined by 70% since the start of the year.