Spirit Airlines receives first Airbus A321neo amid financial restructuring

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Spirit Airlines receives first Airbus A321neo amid financial restructuring

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Airbus A380 | Airbus

By Sky Industry News

Dec 23, 2024

Spirit Airlines has received its first Airbus A321neo aircraft as part of a sale-and-leaseback (SLB) transaction approved by the bankruptcy court managing the airline's Chapter 11 case. The delivery took place on December 21, with the aircraft traveling from Hamburg Finkenwerder Airport to Keflavik International Airport before reaching Detroit Metropolitan Wayne County Airport.

This addition marks Spirit Airlines' 28th A321neo, joining its fleet of 91 smaller A320neo aircraft. However, approximately 25.2% of these planes are currently inactive due to engine issues. Spirit Airlines' Q3 report highlighted compensation arrangements with International Aero Engines and Pratt & Whitney for grounded aircraft until December 31, 2024.

"The temporary removal of engines from service is expected to continue through at least 2026," according to the company. As of September 30, Spirit had recognized $104.7 million in credits related to these groundings.

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The SLB transaction was sanctioned by the United States Bankruptcy Court for the Southern District of New York on December 18. "Each and every federal, state and local governmental agency or department shall be, and hereby is, directed to accept any and all documents and instruments necessary and appropriate to consummate the Aircraft [SLB] Transactions contemplated hereby,” stated the court order.

Spirit Airlines plans to receive three more A321neos between February and April 2025 under this arrangement with JSA International. These will be sold immediately after delivery but leased back long-term.

In addition to acquiring new aircraft, Spirit will reduce capacity in 2025 following court approval for selling its older A320ceo and A321ceo models to GA Telesis. By March next year, Spirit anticipates operating fewer weekly flights compared to previous years.