The low-cost airline known for its canary-yellow planes finds itself fading in a coal mine as President Trump's trade war splits the commercial plane market into American and everywhere else. Spirit Airlines revealed in a recent SEC filing that it's considering cancelling its orders with European aviation giant Airbus due to the rising costs caused by the recently imposed tariffs. The Florida-based airline can ill afford the added cost after emerging from a Chapter 11 bankruptcy in March.
Spirit finds itself in a transatlantic pickle because it operates a fleet of 195 Airbus A320-based planes. According to Simple Flying, the airline is scheduled to receive 92 more A320-family planes through 2031. With the 10% minimum tariff and $110 million starting price per plane, it's estimated that the airline would have to pay at least $1 billion. This total doesn't account for parts needed for maintenance and upkeep. Spirit's Form 10-Q filing with the SEC reads:
"The imposition of tariffs will increase the cost of imported new Airbus aircraft and parts, which in turn could have a material adverse effect on our business, financial condition and/or results of operations. We may seek to postpone or cancel delivery of aircraft currently scheduled for delivery, and may choose not to purchase as many aircraft as we intended in the future."
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Operating a brand-new single-type fleet isn't out of the ordinary for budget planes. Frontier Airlines also exclusively flies Airbus A320 family planes. New planes are more fuel efficient than older models, and carriers will receive discounts for bulk orders from planemakers. Flying a single type simplifies and streamlines management; any pilot or mechanic the airline hires is qualified to work every plane in the fleet.
The last few years have been a rollercoaster ride for Spirit Airlines. The carrier was the belle of the ball as Frontier and JetBlue jockeyed with each other to court the canary-yellow airline for a potential merger. JetBlue won the bidding war with a $3.8 billion offer. However, things quickly took a nosedive after a federal judge shot down the deal in March 2024 on antitrust grounds. Spirit quickly found itself selling 23 planes for $519 million and furloughing pilots last October in a desperate attempt to return to profitability. By November, Spirit filed for bankruptcy. The no-frills airline is now aiming upmarket to survive, but spending an extra $1 billion on planes is a recipe for disaster.
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