Spirit Airlines has reached an agreement with Airbus to defer aircraft deliveries.
Planes that had been scheduled to arrive between the second quarter of 2025 and the end of 2026 are now scheduled for delivery in 2030 and 2031.
The agreement will improve the liquidity of the struggling airline by $340 million over the next two years, Spirit said Monday.
The deferrals, coupled with aircraft Spirit has grounded for inspections of Pratt & Whitney GTF engines, will result in Spirit furloughing 260 pilots, effective Sept. 1.
Spirit expects an average of 26 Airbus A320neo planes to be grounded over the course of this year as the engines are inspected for potential metal contamination. The airline had previously announced a compensation agreement with Pratt & Whitney for between $150 million and $200 million.
Spirit had $1.3 billion in liquidity as of Dec. 31. But the discount carrier is racing to shore up its financial position, including assessing options for refinancing $1.1 billion in loyalty program debt that will come due in September 2025.
Spirit sustained an operating loss of $496 million last year.
"This amendment to our agreement with Airbus is an important part of Spirit's comprehensive plan to bolster profitability and strengthen our balance sheet," CEO Ted Christie said. "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."
With the delivery referrals, Spirit now expects to have a fleet of 219 aircraft at the end of next year, down from its previous fleet schedule of 234 planes.
Spirit operates an all-Airbus fleet.