Spirit Airlines Intends To Furlough Approximately 260 Pilots Effective September 1, 2024
Portfolio Pulse from Benzinga Newsdesk
Spirit Airlines plans to furlough around 260 pilots by September 1, 2024, due to grounded aircraft from Pratt & Whitney GTF engine issues and aircraft deferrals for 2025 and 2026. A compensation agreement with Pratt & Whitney is expected to boost Spirit's liquidity by $150-$200 million.
April 08, 2024 | 10:33 am
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Spirit Airlines to furlough 260 pilots due to engine issues and aircraft deferrals, with a compensation deal expected to improve liquidity by $150-$200M.
The furlough of pilots is a negative development indicating operational challenges. However, the compensation agreement with Pratt & Whitney, which is expected to improve liquidity, could mitigate some of the negative impacts. The net effect on the stock price is uncertain, hence a neutral score.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100