Spirit Airlines to delay Airbus deliveries, furlough pilots

Spirit Airlines Inc says it will defer deliveries of Airbus planes. Shares of the air carrier are slightly in red at writing.

Spirit Airlines is chasing better liquidity

The ultra-low-cost airline will also furlough some 260 pilots, as per its press release this morning.  

Ted Christie – the chief executive of Spirit Airlines attributed the move to his “comprehensive plan to bolster profitability and strengthen balance sheet” on Monday.

In February, $SAVE said it will remain in loss in the first quarter but will turn cash flow positive in the second quarter of 2024 even though it failed to merge with JetBlue Airways as Invezz reported here.  

Wall Street currently has a consensus “underweight” rating on Spirit Airlines stock that’s down close to 75% year-to-date at writing.  

When will $SAVE take Airbus deliveries?

Spirit Airlines has decided to delay Airbus planes scheduled for delivery in the second quarter of next year through the end of 2026.

It may not resume those deliveries until 2031, as per the press release on Monday.

The budget air carrier expects moves that it announced today to help improve its liquidity by up to $340 million over the course of next two years. Note that $SAVE is currently struggling with liquidity since many of its Airbus planes are currently grounded due to a Pratt & Whitney engine recall.

The Miramar-headquartered airline forecasts its revenue to fall between $1.25 billion and $1.28 billion in the current quarter. Spirit Airlines shares do not currently pay a dividend yield.

The post Spirit Airlines to delay Airbus deliveries, furlough pilots appeared first on Invezz