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Spirit Aviation Secures Compensation Agreement for Grounded Aircraft

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Spirit Aviation Secures Compensation Agreement for Grounded Aircraft

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Spirit Aviation Holdings, Inc. ( (FLYY) ) has issued an announcement.

In July 2023, Pratt & Whitney identified a rare condition in the powdered metal used in certain engine parts, necessitating the accelerated inspection of the PW1100G-JM geared turbo fan engines, which power the A320neo aircraft. Spirit Airlines, LLC, formerly known as Spirit Airlines, Inc., was informed that nearly all GTF engines in its fleet would require removal and inspection, leading to the grounding of some A320neo aircraft. On June 4, 2025, Spirit entered into an agreement with International Aero Engines, LLC to receive monthly credits as compensation for aircraft grounded due to these engine issues, potentially impacting Spirit’s liquidity by $150 million to $195 million. This agreement also includes a release of claims against IAE and its affiliates for engine-related issues from March 26, 2024, through December 31, 2025.

More about Spirit Aviation Holdings, Inc.

Average Trading Volume: 236,096

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