U.S. discount carrier Spirit Airlines (SAVE) is deferring new aircraft purchases and laying off 260 pilots as it struggles with a liquidity problem.
In a written statement, the company said that it is undertaking the moves to try and conserve cash and boost its liquidity.
Specifically, Spirit Airlines said it will defer all Airbus (AIR) aircraft orders that are scheduled for the second quarter of 2025 through the end of 2026, pushing the orders out as far as 2031.
The budget airline also said that it is furloughing 260 pilots. The combined moves will boost its liquidity by about $340 million U.S. over the next two years, said the company.
Spirit is looking to boost its liquidity as it struggles with the grounding of many of its Airbus planes because of a Pratt & Whitney engine recall.
Spirit Airlines has also been struggling financially after JetBlue Airways (JBLU) pulled out of a deal to purchase the discount carrier for $3.80 billion U.S.
The stock of Spirit Airlines has declined 73% so far this year and is currently trading at $4.43 U.S. per share.
