Latest News

Spirit halts new pilot, flight attendant training after difficult quarter, Pratt engine issue

0

In this article

SAVE

A Spirit Airlines airplane taxis for takeoff at Denver International Airport in Denver on Feb. 7, 2022.
Michael Ciaglo | Bloomberg | Getty Images

Spirit Airlinesdemand and the expected grounding of dozens of aircraft for inspections because of a manufacturing problem with some Airbus planes’ engines.

The company had already slowed hiring and captain upgrades, Greg Christopher, vice president of flight operations at Spirit, said Thursday in a memo to pilots, which was seen by CNBC. “With these recent developments, however, we will also be suspending all new-hire training efforts starting in November, until further notice.”

Spirit did not immediately respond to CNBC’s request for comment.

“This is not a decision we’ve taken lightly, but it’s necessary to ensure our FlightOps team matches our operational need given the number of aircraft we can fly,” Christopher wrote.

The Miramar, Florida-based discount carrier said it expects to have to ground an average of 26 Airbus A320neo aircraft for inspections of engines made by RTXmanufacturing defect in August. The carrier said it expects 13 grounded planes in January, rising to 41 in December of next year. The airline had a fleet of 202 Airbus planes as of Sept. 30, according to a filing.

“This expectation drives a dramatic decrease in the Company’s near-term growth projections,” Spirit said in a filing. It said it expects capacity to be flat to up mid-single digits next year compared with 2023. The airline is in talks with RTX about compensation for the issue.

Last month, RTX said it expected repairs to take between 250 and 300 days, with an average of 350 planes powered by the geared turbofan engines grounded worldwide between 2024 and 2026.

The budget airline Spirit on Thursday posted a net loss of $157.6 million, which was more than four times its loss a year ago. It forecast negative margins for the last three months of the year.

“We continue to see discounted fares for travel booked through the pre-Thanksgiving period,” CEO Ted Christie said in an earnings release. “And, unfortunately, we have not seen the anticipated return to a normal demand and pricing environment for the peak holiday periods.”

Don’t miss these CNBC PRO stories:

Want to retire in 5 years? Here’s how to invest for it, according to the prosMorgan Stanley says the average stock is breaking down, S&P 500 to fall to 3,900 by year-endThis highly profitable industry is booming as the population agesThis chip stock is getting a ton of love from Wall Street, and it’s not Nvidia

Ford shares fall 12% after earnings underline worries about costs and EV plans

Previous article

The Fed may not hike interest rates next week, but consumers are unlikely to feel any relief

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News