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Spirit Airlines is considering postponing or canceling some of its Airbus orders due to the ongoing trade conflict between the United States and the European Union. The airline, which operates an all-Airbus fleet, is particularly vulnerable to tariffs on EU products imposed by the Trump administration.
The low-cost carrier recently emerged from Chapter 11 restructuring, where it had to sell aircraft and defer deliveries to stabilize financially. In its latest 10-Q filing, Spirit Airlines disclosed that new tariffs could significantly increase costs for Airbus aircraft and parts. This financial strain might lead the airline to delay or cancel future deliveries.
In April, the Trump administration announced a 20% tariff on all EU imports, which was temporarily suspended for 90 days starting April 9th. Currently, a universal baseline tariff rate of 10% applies to EU goods imported into the US. If tariffs return to 20% after July 8th, costs for Spirit's order of 92 Airbus A320-family aircraft through 2031 could rise substantially.
