Spirit Airlines is undergoing significant restructuring as it navigates bankruptcy challenges. The Dania Beach, Florida-based airline has requested permission from a bankruptcy court to reject leases on 87 Airbus A320-family aircraft.
Details of the Lease Rejections
This request involves returning a mix of aircraft, including:
- 19 A320ceos
- 65 A320neos
- 3 A321neos
This action comes shortly after Spirit sought approval to return an additional 27 A320neo planes to leasing giant AerCap. Together, these requests account for 114 planes, which is over half of Spirit’s fleet of 214 aircraft as of August.
Impact on Operations
To put this in perspective, the aircraft reduction equates to an entire airline the size of Allegiant Air or Panama’s Copa Airlines. This decision also includes all A320neo planes, which have faced challenges due to issues with their Pratt and Whitney engines. In August, Spirit had grounded 38 of these Pratt and Whitney-powered aircraft due to engine-related problems.
Financial Implications
Fred Cromer, Spirit’s CFO, stated that rejecting these leases would help alleviate the financial strain from unprofitable leases and reduce costs associated with decommissioned planes. He estimated annual savings in the “hundreds of millions of dollars.”
Strategic Cuts and Network Adjustments
Amid the bankruptcy situation, Spirit Airlines is also making strategic cuts to its flight network. The airline plans to exit at least 13 destinations, including both smaller markets like Boise, Idaho, and larger cities such as Minneapolis.
Operational Changes Ahead
Rana Ghosh, the airline’s chief commercial officer, communicated to staff that they will continue to adjust their routine schedules but do not foresee any further airport exits shortly. November will see Spirit operating nearly 19% fewer flights and offering 16% less seating compared to the previous year, according to data from Cirium.
Workforce Reductions
Additionally, Spirit is implementing cost-saving measures that include furloughing approximately 1,800 flight attendants, representing about one-third of its cabin crew.
If all lease rejections receive court approval, Spirit Airlines will operate with 100 aircraft, comprising:
- 43 A320ceos
- 29 A321ceos
- 29 A321neos
All A319s and A320neos will either have been retired or returned to their lessors as part of the restructuring plan.
