The low-cost airline will get monthly credits as repayment for aircraft grounded by defective engines.
A Spirit A320neo (Photo: AirlineGeeks | William Derrickson)
Ultra-low-cost carrier Spirit is getting compensation for a manufacturing issue that has forced the grounding of some of its aircraft.
In a filing with the U.S. Securities and Exchange Commission, the Florida-based airline said it entered an agreement with International Aero Engines, which will provide a monthly credit to Spirit through the end of this year “as compensation for each Spirit aircraft unavailable for operational service due to GTF engine issues.”
IAE is an affiliate of aircraft engine maker Pratt & Whitney, which builds the geared turbofan powerplant that has caused complications for Spirit and numerous other airlines.
In 2023, Pratt issued a recall for the engines over defects that could cause cracking. Thousands of airplanes were grounded as a result. The company is inspecting and repairing the engines, and carriers like Spirit are facing long waits to get their GTF-powered aircraft back in service.
Spirit told the SEC that the deal’s impact on liquidity will be between $150 million and $195 million. As part of the arrangement, the airline has agreed to release all claims for compensation for the recall that accrue between March 26, 2024, and Dec. 31, 2025.
Spirit emerged from bankruptcy protection in March after four months of financial restructuring designed to alleviate its debt load. The carrier has struggled in the years since the COVID-19 pandemic, mainly due to increased operating expenses. In 2024, it reported a net loss of over $1 billion.
The airline has recently sought to roll back its no-frills reputation with new premium seating offerings, expanded benefits from its customer loyalty program, and a Spirit-branded debit card.
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