Spirit Airlines will defer Airbus orders, furlough 260 pilots

A Spirit Airlines aircraft is being prepared for departure at the Austin-Bergstrom International Airport on February 12, 2024 in Austin, Texas. The airline has announced that it will defer deliveries of new Airbus planes and furlough about 260 pilots to improve its liquidity. CEO Ted Christie stated that these actions are necessary for a stronger and more profitable future for Spirit. The deferrals of Airbus planes are expected to increase the airline’s liquidity by around $340 million over the next two years. In addition, Spirit will receive monthly compensation for grounded Pratt & Whitney engines until the end of 2024. The pilot furloughs will take effect in September, while flight attendants are not expected to face furloughs. Other airlines, such as United Airlines, have also made adjustments to their operations recently due to aircraft shortages. The Spirit pilots’ union has not commented on the furloughs at this time.

Spirit Airlines announced on Monday that it will be deferring deliveries of new Airbus planes and furloughing about 260 pilots in an effort to boost liquidity. The deferrals will involve pushing back the delivery of Airbus planes from the second quarter of 2025 through the end of 2026 to 2030 and 2031. This move is expected to increase the airline’s liquidity by $340 million over the next two years. The decision to furlough pilots is set to take effect in September, with the airline stating that there are no plans for cabin crew furloughs. Other airlines have also made adjustments to hiring and training due to a scarcity of aircraft, which is a stark contrast to the pilot shortage experienced during the pandemic.

Source link