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April 8 (UPI) -- Financially struggling low-cost carrier Spirit Airlines announced Monday it is deferring the planned delivery of new Airbus jetliners and is furloughing 260 of its pilots. The moves are "an important part of Spirit's comprehensive plan to bolster profitability and strengthen our balance sheet," President and CEO Ted Christie said in a statement.
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The deferrals affect all the Airbus aircraft previously scheduled to be delivered to the Florida-based carrier in the second quarter of 2025 through the end of 2026 to 2030-2031, but does not affect "direct-lease" planes set to arrive through 2029.
"Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment," Christie said, adding it will free up cash "as we position the company for a return to profitability."
Meanwhile, the pilots targeted for furlough will go on hiatus beginning Sept. 1.
"We are doing everything we can to protect team members, while balancing our responsibility to return to positive cash-flow and thrive as a healthy company with long-term growth prospects," the CEO said.
Together, the moves are expected to save the carrier $340 million over the next two years.
Spirit Airlines posted a net loss of $447.5 million in 2023 -- down from a loss of $554 million in the previous year, partially driven by a decrease in the cost of jet fuel.
The carrier remains unprofitable in the wake of a failed merger with competitor JetBlue. The two airlines called off their long-planned combination last month after a federal judge blocked the transaction because it violated antitrust laws.
The Biden administration praised the decision, calling it a victory for consumers.
"The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices," Attorney General Merrick Garland said on March 4.
