Spirit Airlines has signed a memorandum of understanding with Airbus for an order of 100 A320neo family aircraft, consisting of A319neo, A320neo and A321neo models.
Spirit Airlines (NYSE: SAVE) continues to make news with major expansion announcements. Last Friday, the Florida-based budget airline announced a new $250M headquarters in Dania Beach, Florida and on Wednesday they signed a memorandum of understanding (MOU) with Airbus for 100 new aircraft. According to the Spirit Airlines Press Release, the new order will consist of a mix of A319/320/321neo aircraft which will help the airline continue their growth while maintaining a young and fuel-efficient fleet. The new aircraft are expected to be delivered through 2027 and Wednesday’s MOU also includes an option for up to 50 additional aircraft. In the announcement, Spirit’s President and CEO, Ted Christie stated,
“This new order represents another milestone for Spirit. The additional aircraft will be used to support Spirit’s growth as we add new destinations and expand our network across the U.S., Latin America and the Caribbean. We look forward to working with our valuable partners at Airbus to finalize our agreement.
Spirit Airlines currently operates an all Airbus fleet with an average age of 5.6 years, consisting of 138 A320 family aircraft. The airline also has seven A320neo aircraft on order set to be delivered by the end of 2019, with an additional 48 A320neo aircraft which will be delivered in 2020 and 2022. Since these aircraft will be built at Airbus’ Mobile Alabama facility, they won't be subject to potential tariff liabilities.
Source: Spirit Airlines