08:43 AM EDT, 04/01/2024 (MT Newswires) -- Spirit Airlines ( SAVE ) has signed an agreement with International Aero Engines, an affiliate of RTX's (RTX) Pratt & Whitney business, for a monthly credit that would compensate Spirit Airlines ( SAVE ) for certain engine issues through the end of the year, the company said Friday in a filing with the US Securities and Exchange Commission.

Pratt & Whitney previously informed Spirit Airlines ( SAVE ) that almost all PW1100G-JM geared turbo fan engines in its A320neo aircraft fleet need to be removed for inspection and the company said its credit deal with International Aero Engines will entitle it to compensation for each aircraft that would be out of operational service due to the engine inspection.

Spirit Airlines ( SAVE ) estimated the credit deal's impact on its liquidity at $150 million to $200 million, depending on the total number of days that its A320neo fleet will be out of service due to the engine issue. The company said it also agreed to release International Aero Engines and its affiliates from claims related to the impacted engines before Dec. 31.

Spirit Airlines ( SAVE ) shares were up 3.3% in recent premarket activity.

Price: 5, Change: +0.16, Percent Change: +3.31