Spirit Airlines considers cancellation of Airbus aircraft orders due to tariff uncertainty

In response to the uncertainties surrounding tariffs imposed by the US government on imports, Spirit Airlines is contemplating the possibility of canceling Airbus aircraft deliveries. The airline expressed its concerns in a SEC filing issued on May 30, 2025, highlighting the potential repercussions of the new tariffs on its operations.

As an ultra-low-cost carrier that relies exclusively on Airbus aircraft, Spirit Airlines heavily depends on imports from the European Union (EU). The airline is apprehensive about the implications of these tariffs, fearing that they may lead to increased costs for imported Airbus aircraft and parts essential for servicing its fleet.

The introduction of a 20% tariff on EU imports to the US on April 9, 2025, raised significant alarm within the industry. While this tariff was temporarily suspended for 90 days, a universal 10% charge on imports remains in effect. Spirit Airlines has expressed its intentions to potentially postpone or terminate the delivery of certain aircraft currently scheduled for receipt and may reconsider the procurement of future aircraft.

In light of these developments, Spirit Airlines acknowledged that such actions could have a substantial adverse impact on its fleet size, business operations, financial condition, and overall performance. The carrier, awaiting the delivery of 25 Airbus A320neos and 32 A321neos, emphasized the gravity of the situation and the potential repercussions of the ongoing tariff uncertainties.

Despite these challenges, Spirit Airlines navigated a successful exit from Chapter 11 restructuring in March 2025. The airline’s reorganization plan, approved by a US court, enabled it to significantly reduce its debt burden and enhance its financial flexibility. Through a consensual deleveraging transaction that equitized approximately $795 million in funded debt, Spirit Airlines fortifies its financial standing post-restructuring.

As the airline industry grapples with the uncertainties created by tariffs and trade disputes, Spirit Airlines remains vigilant in monitoring the situation and evaluating its strategic decisions to mitigate potential risks. The airline’s considerations regarding Airbus aircraft deliveries underscore the broader impact of trade policies on the aviation sector and the challenges faced by carriers operating in a volatile trade environment.

Spirit Airlines continues to assess the implications of the evolving tariff landscape on its fleet expansion plans and overall business operations. The airline’s proactive approach in addressing tariff uncertainties reflects its commitment to navigating the complexities of the current trade environment while prioritizing the long-term sustainability of its operations.