Spirit Airlines furloughs 260 pilots and delays aircraft deliveries

Low-cost airline Spirit announced Monday that it will delay scheduled deliveries of new Airbus aircraft from the second quarter of 2025 until 2026 and plans to furlough about 260 pilots as part of efforts to boost the company's liquidity.

according to press release From the airline, the newly reached agreement with Airbus will postpone scheduled deliveries until 2030-31 and is expected to improve Spirit's liquidity by approximately $340 million over the next two years.

“This amendment to our agreement with Airbus is an important part of Spirit’s overall plan to enhance profitability and strengthen our balance sheet,” Ted Christie, Spirit’s president and CEO, said in a statement.

“Deferring these aircraft gives us the opportunity to reset the business and focus on our core airline as we adapt to changes in the competitive environment,” Christie added.

These postponements, combined with quality and availability issues with Pratt & Whitney-supplied engines, mean the airline will furlough about 260 pilots starting Sept. 1.

“I am extremely proud of our dedicated Spirit team for their focus and flexibility over the past few years. Unfortunately, we have had to make the difficult decision to furlough pilots due to the grounding of aircraft in our fleet and our postponement of future deliveries,” Christie said.

“We are doing everything we can to protect team members, while balancing our responsibility to return to positive cash flow and thrive as a healthy company with long-term growth prospects,” Christie continued.

according to Reports From CNBC, Christie told employees in a memo that while these were not the steps the company wanted to take, they were “essential to ensuring a strong, profitable future for Spirit.”

Following the announcement, shares of the Florida-based airline rose Investopedia Announcing a 4.5 percent increase during early afternoon trading. However, the airline's stock prices are still down 70 percent since the beginning of the year.