Spirit Airlines receives $150m compensation as GTF groundings continue
March 4, 2025
As ongoing Pratt & Whitney GTF engine issues continue to impact airline operations worldwide, Spirit Airlines expects the removal and inspections of its PW 1100G-JM powerplants to continue through at least 2026 – with the airline having received $150.6 million in compensation from the engine manufacturer in 2024.
“The temporary removal of engines from service is expected to continue through at least 2026,” disclosed Spirit in a 3 March 2025 regulatory filing. “We are currently discussing arrangements with Pratt & Whitney for any of our aircraft that remain unavailable for operational service after December 31, 2024”.
Additionally, the filing revealed that the airline has already received over $150 million in credit related to the aircraft on ground (AOG) days through until the end of 2024. This builds on an earlier agreement, signed with P&W affiliate International Aero Engines (IAE) in March 2024, which would see Spirit receive monthly compensation for each unserviceable aircraft (due to GTF engine issues) between 1 October 2023 and the end of 2024.
In July 2023, Pratt & Whitney parent company RTX determined “that a new rare condition in the powdered metal used to manufacture certain engine parts will require accelerated inspection of the PW 1100G-JM GTF [geared turbofan] fleet” (which powers Spirit’s A320neo family). As of the end of 2024, Spirit’s overall fleet of 213 single-aisle Airbus types included 91 A320neos, with the airline cautioning that “carriers that operate a more diversified fleet are better positioned that [Spirit is] to manage such events” as GTF-related disruptions.
With the impact of initial GTF issues on Spirit’s operations having initially “improved” by the second half of 2020, the second half of 2022 saw reliability issues once again negatively impact the airline. In 2024, it operated its fleet “at a slightly lower daily average utilisation level of 9.9 hours, compared to 11.1 hours for 2023 and 10.7 hours for 2022”, which it primarily attributed to GTF engine issues.
Additionally, with engine problems having already led to “reduced, suspended or discontinued service in a number of cities,” Spirit took the step of furloughing approximately 170 pilots effective from 1 September 2024. This decision was prompted “to ensure that we have the right level of resources to meet our reduced aircraft capacity levels, primarily due to increased AOG days from GTF engine issues and the sale of aircraft,” detailed Spirit; which subsequently announced it would furlough an additional 300 pilots from January 2025 to match projected lower flight volumes for 2025.
As of the end of 2024, Spirit is committed to purchasing additional 16 PW 1100G-JM engines with deliveries through 2031; complementing its 55 firm outstanding aircraft orders, including A320neos and A321neos, also due for delivery in the same timescale. However, “We cannot be certain that new technical issues may be mitigated given the relatively short life these engines have been in service,” cautioned Spirit. “We continuously work with the engine manufacturer to secure support and relief in connection with possible engine related operation disruptions.”
The ongoing impact comes as the low-cost US carrier is preparing to emerge from Chapter 11 bankruptcy reorganisation proceedings the coming weeks (in line with timelines first set out last November); concluding a process initiated in November 2024. At the time, Spirit president and CEO Ted Christie described the court’s confirmation of the reorganisation plan as a “major milestone,” concluding: “As we move forward, our leadership teams remains focused on reducing costs while also advancing our strategic initiatives to transform our guest experience”.
