Spirit Airlines to Cut Over 100 Planes Amid Bankruptcy Restructuring

Spirit Airlines is navigating a challenging path as it seeks to emerge from bankruptcy, making significant cuts to its fleet in the process. The Dania Beach, Florida-based low-cost airline recently requested permission from a bankruptcy court to reject leases on 87 Airbus A320-family aircraft, which it plans to return to lessors. This request includes 19 A320ceos, 65 A320neos, and three A321neos.

This move follows a previous court filing in which Spirit sought approval to return an additional 27 A320neo planes to AerCap, a major aircraft leasing company. In total, Spirit aims to part ways with 114 planes, which represents more than half of its fleet of 214 aircraft as of August, when the airline filed for its second Chapter 11 bankruptcy in less than a year.

To put this into perspective, the number of planes Spirit is set to cut is roughly equivalent to the entire fleet of airlines such as Allegiant Air or Copa Airlines from Panama. The lease rejections also encompass Spirit’s entire fleet of fuel-efficient A320neo aircraft, which have faced challenges due to issues with their Pratt and Whitney geared turbofan engines. In August, the airline grounded 38 of these aircraft because of engine-related problems.

Fred Cromer, Spirit’s Chief Financial Officer, stated in a court filing that rejecting these leases will alleviate the airline of unprofitable lease obligations and the costs associated with maintaining and storing several aircraft that are currently out of service. Cromer estimates that this decision could result in annual savings of “hundreds of millions of dollars.”

In a bid to stabilize its operations, Spirit is also making drastic cuts to its route network. The airline plans to exit at least 13 destinations, which range from smaller markets like Boise, Idaho, to larger cities such as Minneapolis. Rana Ghosh, Spirit’s Chief Commercial Officer, assured staff in a note on September 26 that while routine schedule and network adjustments would continue, no further airport exits are anticipated in the near future.

According to data from aviation analytics firm Cirium, Spirit is expected to operate nearly 19% fewer flights and offer 16% fewer seats in November compared to the same month last year. The airline is also seeking substantial cost savings from its pilots and has announced plans to furlough approximately 1,800 flight attendants, representing one-third of its cabin crew, by December 1.

If the court approves all lease rejections, Spirit’s operational fleet will be reduced to 100 aircraft, comprising 43 A320ceos, 29 A321ceos, and 29 A321neos. All A319s and A320neos will either have been retired or returned to lessors.

As Spirit Airlines works to restructure its operations and reduce costs, travelers should stay informed about potential changes to flight schedules and routes. The airline’s efforts to streamline its fleet and operations may lead to a more efficient service in the long run, but passengers should be prepared for possible disruptions in the interim.