Spirit Airlines to Ground 41 A320neo Aircraft by End of 2024 Due to Engine Inspections

Spirit Airlines anticipates an increase in its grounded A320neo family aircraft, projecting 41 units to be out of service by the end of 2024. This escalation is due to mandatory inspections of the Pratt & Whitney PW1100G engines. Throughout the year, the airline expects to have an average of 26 aircraft grounded at any given time.

During an earnings call, Matthew Klein, Executive Vice-President and Chief Commercial Officer, highlighted the dynamic nature of engine removals and the timeline for returning aircraft to service, emphasizing the figures as baseline estimates.

In January 2024, Spirit had already parked 13 aircraft for inspections. The airline attributes the engine issues, along with ongoing air traffic control (ATC) staffing challenges, as major factors in the 5.5-point reduction in its first quarter 2024 capacity growth guidance. Despite the significant impact on its network, including the discontinuation of service at Denver International from January 9, 2024, due to these engine problems, Spirit Airlines has not yet adjusted its schedules for Q2 2024 and beyond to reflect these groundings.

The airline’s leadership, including President and CEO Ted Christie, pointed out the extended turnaround times for engine maintenance, which have now reached over 300 days, far exceeding the previously typical 90- to 120-day range. This unpredictability complicates forecasting the number of engines that will be serviced by year-end.

Negotiations with Pratt for compensation are underway, with some expected relief already factored into Spirit’s 2024 financial guidance. However, the airline acknowledges that any compensation will not fully cover the costs associated with the aircraft groundings. Until these engine issues are resolved, achieving an optimized cost structure remains a challenge for the low-cost carrier (LCC).

To mitigate the impact, Spirit is increasing the utilization of its operational fleet and integrating more fuel-efficient aircraft, such as the A321-200NX, with twenty new units expected to join in 2024. The airline’s current fleet includes various Airbus models, with pending orders for additional A320-200Ns and A321-200NXs, indicating a strategic focus on modernization and efficiency amidst ongoing operational challenges.