Spirit Airlines compensated $150m for ongoing Pratt & Whitney engine issues

Spirit Airlines has received about $150m in compensation from engine maker Pratt & Whitney for its grounded Airbus jets, and the carrier expects further payments as its geared turbofan (GTF) engine removals will continue through “at least” 2026. Miramar, Florida-based Spirit says it is “currently discussing arrangements with [P&W] for any of its aircraft that remain unavailable for operational service” beyond the end of 2024. “We expect to continue to receive compensation from [P&W] for the loss of utilisation of the GTF engines,” it says. Details of Spirit’s compensation agreement with P&W affiliate International Aero Engines, which provided Spirit a monthly credit from October 2023 through 31 December, were disclosed in a recent 10K filing with the US Securities and Exchange Commission. The amount is based on the number of days Spirit’s Airbus A320neo-family jets have been out of service for engine inspections and repairs, and falls on the low end of the $150-$200m compensation package Spirit said it expected to receive from P&W in March 2024. Hundreds of A320neo, A321neo and A220 jets – as well as Embraer E190-E2-family aircraft – have been grounded on a rolling basis since P&W disclosed in July 2023 that a potential defect in the powdered metal used to manufacture some engine parts would require a widespread recall. <br/>