The low-cost airline known for its canary-yellow planes finds itself fading in a coal mine as President Trump’s trade war splits the industrial plane market into American and in every single place else. Spirit Airlines revealed in a recent SEC filing that it’s considering cancelling its orders with European aviation giant Airbus as a consequence of the rising costs brought on by the recently imposed tariffs. The Florida-based airline can unwell afford the added cost after emerging from a Chapter 11 bankruptcy in March.
Spirit finds itself in a transatlantic pickle since it operates a fleet of 195 Airbus A320-based planes. In line with Easy Flying, the airline is scheduled to receive 92 more A320-family planes through 2031. With the ten% minimum tariff and $110 million starting price per plane, it’s estimated that the airline would need to pay not less than $1 billion. This total doesn’t account for parts needed for maintenance and maintenance. Spirit’s Form 10-Q filing with the SEC reads:
“The imposition of tariffs will increase the fee of imported latest Airbus aircraft and parts, which in turn could have a fabric opposed effect on our business, financial condition and/or results of operations. We may seek to postpone or cancel delivery of aircraft currently scheduled for delivery, and should select not to buy as many aircraft as we intended in the long run.”
Spirit Airlines didn’t need any more problems
Operating a brand-new single-type fleet is not out of the unusual for budget planes. Frontier Airlines also exclusively flies Airbus A320 family planes. Latest planes are more fuel efficient than older models, and carriers will receive discounts for bulk orders from planemakers. Flying a single type simplifies and streamlines management; any pilot or mechanic the airline hires is qualified to work every plane within the fleet.
The previous few years have been a rollercoaster ride for Spirit Airlines. The carrier was the belle of the ball as Frontier and JetBlue jockeyed with one another to court the canary-yellow airline for a possible merger. JetBlue won the bidding war with a $3.8 billion offer. Nonetheless, things quickly took a nosedive after a federal judge shot down the deal in March 2024 on antitrust grounds. Spirit quickly found itself selling 23 planes for $519 million and furloughing pilots last October in a desperate try to return to profitability. By November, Spirit filed for bankruptcy. The no-frills airline is now aiming upmarket to survive, but spending an additional $1 billion on planes is a recipe for disaster.
This Article First Appeared At www.jalopnik.com
