(New York) The struggling American airline Spirit Airlines has postponed the delivery of the Airbus 320Neo, which it was due to receive by the end of 2026, by five years, allowing it to improve its liquidity by around $350 million. over the next two years.
Spirit announced in a press release on Monday that it had reached an agreement with the European aircraft manufacturer to delay deliveries planned between the second half of 2025 and the end of 2026, but “there is no change in orders for Airbus aircraft whose delivery is planned for 2027-2029.
Asked by AFP, the low-cost airline refused to specify how many planes were affected by this discrepancy and Airbus indicated that it did not comment on contractual agreements with its customers.
Airbus announced in January 2020 an order for 100 single-aisle A320neo family aircraft – A319neo, A320neo and A321neo – for an amount exceeding ten billion dollars at list price.
“The amendment to our contract with Airbus is an important part of Spirit’s comprehensive plan to support profitability and strengthen our balance sheet,” commented Ted Christie, boss of the company, quoted in the press release.
According to him, “strengthening liquidity will provide (him) additional financial stability”.
The agreement announced Monday offers Spirit Airlines a welcome breath of fresh air after the abandonment of its proposed merger with its competitor JetBlue, announced on March 4, which was considered a lifeline.
Spirit had been at the heart of a bidding war between JetBlue and Frontier Airlines, won in July 2022 by the first with an offer of 3.6 billion against 2.9 billion for the second.
Executives at JetBlue and Spirit said they were not in a position to obtain the regulatory approvals needed for the union by the deadline they had set at the end of July.
This decision came a few weeks after an unfavorable ruling that threatened to prevent the formation of the fifth largest player in the sector in the United States.
The US Department of Justice seized a civil court in Boston in March 2023, asserting that this merger would have negative effects for consumers.
Analysts have cited a risk of Spirit filing for bankruptcy – which was to receive a breakup fee of $69 million – after the failure of this merger.
The company will also replenish its coffers to the tune of $150 to $200 million thanks to compensation from engine manufacturer Pratt & Whitney, a subsidiary of the American group RTX.
Hundreds of engines powering the A320neo must be inspected until 2026 because of a contaminated component used for high-pressure turbine disks. Each plane must remain on the ground on average between 250 and 300 days.
On Wall Street, around 12:30 p.m. (Eastern time), Spirit shares gained 4.29%.