Pressed for cash, Spirit Airlines delays Airbus deliveries
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No-frills carrier Spirit Airlines announced Monday it reached an agreement with Airbus to delay new aircraft deliveries in a move intended to boost the US company's financial position.
The agreement shifts deliveries of single-aisle jets that were set for 2025 and 2026 back to the 2030-31 timeframe, providing some $340 million in additional liquidity to Spirit over the next two years, Spirit said in a press release.
As a result of the move, Spirit also will furlough about 260 pilots starting on September 1.
"This amendment to our agreement with Airbus is an important part of Spirit's comprehensive plan to bolster profitability and strengthen our balance sheet," said Spirit Chief Executive Ted Christie.
"Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment."
The action relates to a purchase agreement announced by Airbus in January 2020 that involved 100 aircraft from the A320neo family.
Spirit's financial future has looked more uncertain following the demise of its proposed $3.8 billion takeover by JetBlue. In March, the two companies formally aborted the deal after a federal judge ruled it violated US antitrust law.