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Spirit Airlines is looking for more ways to boost its balance sheet. The aircraft sale would considerably decrease Spiritâs capacity for 2025.
Spirit Airlines said Thursday that it entered a commitment to sell 23 Airbus A320s and A321s in a deal valued at approximately $519 million as it looks for ways to shore up its liquidity.
The agreement is with GA Telesis, a firm that specializes in aircraft sales, leasing, distribution and maintenance facilities, according to a regulatory filing.
Spirit estimates the sale would give it approximately $225 million in liquidity through the end of 2025.Â
The ultra-low-cost carrier said capacity for the third quarter was down 1.2% compared to last year and anticipates fourth-quarter capacity to be down 20%.
For 2025, Spirit said it also expects capacity to decrease to the mid-teens due to the sale of aircraft, an increase in the number of grounded aircraft due to Pratt & Whitney geared turbofan engine issues, and the retirement of its older A319 planes. It added that it has six new A321neo aircraft scheduled for delivery in 2025.
Spirit said it would report third-quarter results in mid-November.
A Spirit-Frontier Merger Could Be Back on the Table
The aircraft sale comes as the carrier is reportedly exploring filing for bankruptcy and renewing merger talks with Frontier Airlines.
The Wall Street Journal reported earlier this week that talks between Spirit and Frontier are still in the early stages and may not result in a deal. A merger with Frontier would happen as part of Spirit restructuring its debt and other liabilities related to bankruptcy, the Journal report said.
Spirit and Frontier declined to comment on the Journalâs story.
Spirit also extended a key deadline for refinancing more than $1.1 billion in debt concerning a credit card processing agreement.
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