Low-cost carrier Spirit on Monday said it plans to postpone deliveries of new Airbus planes scheduled for the second quarter of 2025 to 2026 and furlough about 260 pilots as part of efforts to increase the airline’s liquidity. Announced.
according to press release The new agreement with Airbus delays scheduled deliveries from 2030 to 2031 and is expected to improve Spirit’s liquidity by approximately $340 million over the next two years.
“The amendments to our contract with Airbus are an important part of Spirit’s comprehensive plan to strengthen our profitability and strengthen our balance sheet,” Ted Christie, Spirit’s president and chief executive officer, said in a statement.
“The deferral of these aircraft provides us with an opportunity to reset our business and focus on our core airline while adapting to a changing competitive environment,” Christie added.
These postponements, in addition to issues with the quality and availability of Pratt & Whitney-supplied engines, mean the airline will furlough about 260 pilots starting Sept. 1.
“I am extremely proud of the focus and resilience of our dedicated Spirit team over the past few years. It is with regret that our aircraft have been grounded and future deliveries have been postponed. Given these considerations, we had to make the difficult decision to furlough our pilots,” Christie said.
“We are doing everything we can to protect our team members while balancing our responsibility to return to positive cash flow and grow as a healthy company with long-term growth prospects,” Christie said. continued.
according to report Christie told staff in a memo, via CNBC, that while these were not the steps the company wanted, they were “necessary to ensure a strong and profitable future for Spirit.”
The Florida-based airline’s stock price rose following the announcement. investmentpedia It reported a 4.5% rise in early afternoon trading. However, the company’s stock price is still down 70% since the beginning of the year.
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