08:48 AM EDT, 04/08/2024 (MT Newswires) -- Spirit Airlines ( SAVE ) will postpone all Airbus plane deliveries and furlough pilots as part of its efforts to boost profitability, following the collapse of the budget airline's proposed acquisition by JetBlue Airways (JBLU).

The company agreed with the European aircraft manufacturer to defer all planes on order, which were originally set to be delivered in the second quarter of 2025 through the end of the subsequent year, to instead arrive in the 2030 to 2031 period. The move is expected to improve the airline's liquidity by roughly $340 million in the next two years.

"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," Spirit Chief Executive Ted Christie said in a statement Monday. "In addition, enhancing our liquidity provides us additional financial stability as we position the company for a return to profitability."

The deferrals do not include the direct-lease aircraft scheduled for delivery in that period, one each in the second and third quarter of 2025, according to the carrier. Additionally, the company made no changes to its aircraft delivery order with Airbus for the 2027 to 2029 period.

Spirit aims to discharge about 260 pilots in the beginning of September due to the deferrals, as well as the aircrafts that are already grounded because of a problem with the Pratt & Whitney geared turbofan engines in them. "Unfortunately, we had to make the difficult decision to furlough pilots given the grounded aircraft in our fleet and our deferral of future deliveries," Christie said.

Near the end of last month, Spirit signed an agreement with International Aero Engines, an affiliate of RTX's (RTX) Pratt & Whitney, for a monthly credit that would compensate the company for the engines. The deal is estimated to improve Spirit's liquidity between $150 million and $200 million over the term of the agreement. The airline said it will evaluate other options to add liquidity in the coming months.

In March, JetBlue terminated its planned $3.8 billion buyout of Spirit after failing to clear regulatory hurdles. Spirit received $69 million from JetBlue as a termination fee, saying at the time that it would take prudent steps to ensure the strength of its balance sheet and ongoing operations.

Spirit recorded a narrower-than-expected fourth-quarter loss in February. The airline anticipates an "unprecedented sequential improvement" in total revenue per available seat mile in the ongoing quarter, as the domestic environment continues to recover in 2024, Christie said in the earnings statement.

Price: 4.45, Change: +0.02, Percent Change: +0.44