Spirit Airlines announced it would delay the delivery of aircraft from Airbus that were scheduled to be delivered in the second quarter of 2025 through the end of 2026 until 2030-2031. The carrier said the move would improve its liquidity positions by about $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 aircraft deferrals, Spirit announced it intends to furlough approximately 260 pilots effective Sept 1. The airline had previously announced it had entered into a compensation agreement with Pratt & Whitney regarding the engines, which is estimated to improve Spirit’s liquidity between $150 million and $200 million over the term of that agreement. In addition, according to the announcement, Spirit will continue to evaluate the use of its current financeable asset base to add additional liquidity over the coming months.

Spirit had $1.3 billion in liquidity as of Dec. 31. The discount carrier is working 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 had an operating loss of $496 million last year.

Ted Christie, Spirit’s CEO, said the amendment to the agreement with Airbus is an important part of Spirit’s comprehensive plan to bolster profitability and strengthen its balance sheet. He said deferring the 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, he said, “enhancing our liquidity provides us additional financial stability as we position the company for a return to profitability.”