MIRAMAR,
Fla., April 8, 2024 /PRNewswire/ -- Spirit
Airlines, Inc. ("Spirit" or the "Company") (NYSE: SAVE) today
announced that it reached an agreement with Airbus to defer all
aircraft on order that are scheduled to be delivered in the second
quarter of 2025 through the end of 2026 to 2030-2031. These
deferrals do not include the direct-lease aircraft scheduled for
delivery in that period, one each in the second and third quarter
2025, respectively. The agreement with Airbus will improve Spirit's
liquidity position by approximately $340
million over the next two years.
There are no changes to the aircraft on order with Airbus that
are scheduled to be delivered in 2027-2029.
As a result of grounded aircraft due to Pratt & Whitney GTF
engine availability issues, along with the 2025 and 2026 aircraft
deferrals, Spirit announced it intends to furlough approximately
260 Pilots effective September 1,
2024.
As recently announced, Spirit entered into a compensation
agreement with Pratt & Whitney regarding its GTF engines, which
is estimated to improve Spirit's liquidity between $150 million and $200
million over the term of that agreement. In addition, Spirit
will continue to evaluate the use of its current financeable asset
base to add additional liquidity over the coming months.
"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 Ted
Christie, Spirit's President and Chief Executive Officer.
"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. In addition, enhancing our
liquidity provides us additional financial stability as we position
the Company for a return to profitability. We would like to thank
our partners at Airbus for their continued support and commitment
to the long-term success of Spirit."
Christie continued, "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. 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. I thank the Spirit team for continuing to deliver
affordable fares and great experiences to Guests."
The Airbus amendment also defers by two years the exercise dates
for optional aircraft included in Spirit's purchase agreement.
There is no change to the total number of aircraft on order or
Spirit options for additional aircraft.
As previously announced, Spirit has retained Perella Weinberg & Partners L.P. and
Davis Polk & Wardwell LLP as
advisors. The Company has been taking, and will continue to take,
prudent steps to ensure the strength of its balance sheet and
ongoing operations, including assessing options to refinance
upcoming debt maturities and bonds.
About Spirit Airlines
Spirit Airlines (NYSE: SAVE) is committed to delivering the best
value in the sky. We are the leader in providing customizable
travel options starting with an unbundled fare. This allows our
Guests to pay only for the options they choose — like bags, seat
assignments, refreshments and Wi-Fi — something we call À La
Smarte®. Our Fit Fleet® is one of the youngest and most
fuel-efficient in the United
States. We serve destinations throughout the U.S.,
Latin America and the Caribbean, making it possible for our Guests
to venture further and discover more than ever before. We are
committed to inspiring positive change in the communities where we
live and work through the Spirit Charitable Foundation. Come save
with us at spirit.com.
Investor inquiries:
DeAnne Gabel
(954) 447-7920
investorrelations@spirit.com
Media inquiries:
Spirit Media Relations
Media_Relations@spirit.com
or
FGS Global
Robin Weinberg / Emily Claffey / Bridget
Stephan
(212) 687-8080
Spirit@FGSGlobal.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/spirit-airlines-announces-deferral-of-airbus-aircraft-deliveries-302110043.html
SOURCE Spirit Airlines, Inc.