Spirit Airlines has received about $150 million in compensation from engine maker Pratt & Whitney (P&W) for its grounded Airbus jets, and the carrier expects further payments as its geared turbofan (GTF) engine removals will continue through “at least” 2026.
Miramar, Florida-based Spirit says it is “currently discussing arrangements with [P&W] for any of its aircraft that remain unavailable for operational service” beyond the end of 2024.
“We expect to continue to receive compensation from [P&W] for the loss of utilisation of the GTF engines,” it says.
Details of Spirit’s compensation agreement with P&W affiliate International Aero Engines, which provided Spirit a monthly credit from October 2023 through 31 December, were disclosed in a recent 10K filing with the US Securities and Exchange Commission.
The amount is based on the number of days Spirit’s Airbus A320neo-family jets have been out of service for engine inspections and repairs, and falls on the low end of the $150-$200 million compensation package Spirit said it expected to receive from P&W in March 2024.
Hundreds of A320neo, A321neo and A220 jets – as well as Embraer E190-E2-family aircraft – have been grounded on a rolling basis since P&W disclosed in July 2023 that a potential defect in the powdered metal used to manufacture some engine parts would require a widespread recall.
Last month, roughly a third of the worldwide fleet of GTF-powered jets was tagged by data analytics firm Cirium as “in storage” – meaning they have been grounded for more than 30 days. Most are likely grounded for engine repairs.
The inspections have been widely disruptive due to months-long turnaround times from engine shops. US carrier JetBlue Airways recently reported that individual engines spend an average of about a year off-wing before returning to service.
The groundings have hit Spirit – which is working to emerge from Chapter 11 restructuring sometime this month – particularly hard. The carrier says in the 10K filing that it has “reduced, suspended or discontinued service in a number of cities” partially as a result of GTF engine issues, including service to Denver.
Cirium data shows that 30 of Spirit’s A320neo and A321neos are currently in storage.
