Ultra-low-cost carrier (ULCC) Spirit plans to furlough approximately 260 pilots later this year, according to a news release issued on Monday. The company continues to grapple with Pratt & Whitney engine issues, losing almost $184 million last quarter.
Spirit says the furloughs will take effect on Sept. 1, 2024. In late 2023, the airline halted all pilot and flight attendant hiring, citing slower 2024 growth plans and ongoing engine troubles.
Earlier this year, a federal judge struck down the proposed merger between JetBlue and Spirit. The duo terminated their merger agreement in early March.
“I am extremely proud of our dedicated Spirit team for their focus and resilience over the last few years. Unfortunately, we had to make the difficult decision to furlough Pilots given the grounded aircraft in our fleet and our deferral of future deliveries,” Spirit chief Ted Christie said in a press release.
Aircraft Deferrals
In a move to bolster the company’s liquidity, Spirit says it also plans to defer new aircraft deliveries with Airbus. All aircraft on order that are scheduled to be delivered in the second quarter of 2025 through the end of 2026 will shift to 2030 and 2031, the carrier shared.
Spirit expects this move to improve its liquidity position by roughly $340 million over the next two 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,” Christie added.
