Spirit Airlines Gets Pratt & Whitney Payout for GTF Engine Issues

Spirit Airlines has secured a new monthly credit agreement with International Aero Engines (IAE), a Pratt & Whitney affiliate, to compensate for the ongoing PW1100G-JM engine recalls and accelerated inspections impacting its fleet. The financial relief is expected to improve Spirit’s liquidity by approximately USD150 million to USD195 million in 2025, depending on the number of aircraft grounded due to the Geared Turbofan (GTF) engine issues.

This marks the second compensation deal between Spirit and IAE. The first agreement, signed in March 2024, covered 2024 losses and was recognized as a reduction in purchase costs for maintenance, spare engines, and short-term engine rentals, totaling USD150.6 million.

According to ch-aviation data, Spirit’s fleet currently includes 215 aircraft: sixty-three A320-200s, ninety-one A320-200Ns, twenty-nine A321-200s, and thirty-two A321-200NX aircraft. As of June 2025, thirty-six A320-200Ns remain inactive due to the ongoing engine problems.

The airline expects engine removals and inspections to continue through at least late 2026, which will limit capacity and affect network growth. The ongoing engine reliability issues have placed significant operational strain on Spirit, which relies heavily on the affected A320neo family aircraft for its low-cost carrier model.

Spirit continues to work closely with Pratt & Whitney and IAE as it navigates the extended impact of the GTF engine recalls on its fleet availability and financial performance.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com