Spirit Airlines secures $150M-200M in compensation from IAE for grounded GTF engines

Spirit Aviation Holdings, Inc.

Agreement with IAE provides monthly credit for each Spirit A320neo grounded due to GTF engine inspections through end of 2024.
Estimated liquidity impact between $150M and $200M, based on days aircraft are unavailable in 2024.
Spirit releases IAE from claims related to impacted engines accrued prior to December 31, 2024.
Spirit will discuss arrangements with Pratt & Whitney for aircraft unavailable after 2024.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Spirit Aviation Holdings, Inc. entered into Agreement with International Aero Engines, LLC (IAE) valued at between $150 million and $200 million (effective 2024-03-26).

Action: entry
Counterparty: International Aero Engines, LLC (IAE)
Value: between $150 million and $200 million
Effective: 2024-03-26

Exact text from the filing

On March 26, 2024, Spirit entered into an agreement with International Aero Engines, LLC ("IAE"), an affiliate of Pratt & Whitney (the “Agreement”) pursuant to which IAE will provide Spirit with a monthly credit through the end of 2024, subject to certain conditions, as compensation for each Spirit aircraft unavailable for operational service due to GTF engine issues.

View on SEC.gov

438 material agreements filed in the last 30 days. Browse all material agreements →

Spirit Aviation Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001498710-24-000142

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.