Spirit Airlines has the ability to cancel orders for Airbus A320neo planes due to US tariffs

Spirit Airlines is facing potential delays and cancellations of its Airbus A320neo-family aircraft orders due to increased tariffs on European Union imports. The low-cost carrier, based at Fort Lauderdale-Hollywood International Airport, views trade tensions as a significant risk to its fleet planning and financial recovery.

A recent SEC filing by Spirit Airlines revealed that new tariffs could result in higher costs for Airbus aircraft and parts. With economic uncertainty and price volatility adding to the challenge, the airline might have to reconsider its planned deliveries.

Spirit Airlines currently operates an all-Airbus fleet and heavily relies on imports from the European Union. The existing 10% tariff on EU imports may escalate to 20% if the 90-day suspension initiated on April 9 comes to an end without an extension, impacting the cost of aircraft and replacement parts significantly.

The airline has expressed concerns that increased tariffs could have a negative impact on its financial health, operations, and growth. The uncertainty surrounding the duration and scale of tariffs adds pressure as Spirit navigates challenges post-restructuring.

As of 2025, Spirit Airlines operates a fleet of 213 Airbus aircraft. All its planes, including the A320s, A320neos, A321s, and A321neos, are manufactured by Airbus in the EU. This dependence on EU-manufactured parts makes Spirit vulnerable to transatlantic trade disputes and disruptions in the supply chain.

The airline faces competitive pressure from major U.S. carriers offering low-cost fare options. While Spirit reported a $289 million operating loss in Q1 2025, it managed a $61 million net profit largely due to accounting gains post Chapter 11 exit. Despite restructuring its finances in March, the airline is striving to stabilize operations in a challenging market environment.

Tariffs increasing aircraft acquisition costs and heightened competition from rival airlines present hurdles for Spirit Airlines’ growth and expansion plans. The ongoing trade tensions and uncertainties surrounding tariffs may force the carrier to make tough decisions regarding its fleet strategy to remain competitive.

With these challenges on the horizon, Spirit Airlines must navigate a difficult path forward while staying attuned to market dynamics and potential disruptions in the supply chain. The airline’s ability to adapt and evolve in the face of trade-related obstacles will be crucial in ensuring its sustained growth and operational efficiency.