Spirit Airlines Enters Material Definitive Agreement

TL;DR

Spirit Airlines just signed a big deal, details TBD.

AI Summary

Spirit Airlines, Inc. entered into a Material Definitive Agreement on March 26, 2024. The filing does not disclose specific details of the agreement or any associated dollar amounts, but it is classified as a current report under the Securities Exchange Act of 1934.

Why It Matters

This filing indicates a significant new agreement for Spirit Airlines, which could impact its operations, financial standing, or strategic direction.

Risk Assessment

Risk Level: medium — The lack of specific details in the filing creates uncertainty about the nature and impact of the agreement.

Key Players & Entities

• Spirit Airlines, Inc. (company) — Registrant
• March 26, 2024 (date) — Date of earliest event reported
• March 29, 2024 (date) — Date of report

FAQ

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value SAVE New York Stock Exchange
• $150 million — ity is currently expected to be between $150 million and $200 million, primarily determined
• $200 m — expected to be between $150 million and $200 million, primarily determined by the numb

Filing Documents

• save-20240326.htm (8-K) — 27KB
• 0001498710-24-000142.txt ( ) — 149KB
• save-20240326.xsd (EX-101.SCH) — 2KB
• save-20240326_lab.xml (EX-101.LAB) — 22KB
• save-20240326_pre.xml (EX-101.PRE) — 12KB
• save-20240326_htm.xml (XML) — 3KB

01

Item 1.01 Entry into a Material Definitive Agreement. As previously disclosed, in July 2023, Pratt & Whitney announced that it had determined that a rare condition in the powdered metal used to manufacture certain engine parts would require accelerated inspection of the PW1100G-JM geared turbo fan ("GTF") fleet, which powers the A320neo aircraft. Pratt & Whitney notified Spirit Airlines, Inc. ("Spirit") that nearly all GTF engines in its fleet, including potentially the engines slotted for near term future aircraft deliveries would be subject to the removal and inspection, or replacement, of the powdered metal impacted parts. As a result, Spirit has removed engines from service and grounded some of its A320neo aircraft for inspection requirements. On March 26, 2024, Spirit entered into an agreement with International Aero Engines, LLC ("IAE"), an affiliate of Pratt & Whitney (the "Agreement") pursuant to which IAE will provide Spirit with a monthly credit through the end of 2024, subject to certain conditions, as compensation for each Spirit aircraft unavailable for operational service due to GTF engine issues. The estimated impact of the Agreement on Spirit's liquidity is currently expected to be between $150 million and $200 million, primarily determined by the number of days accumulated in 2024 in which Spirit aircraft are unavailable for operational service due to GTF engine issues. Pursuant to the Agreement, Spirit agreed to release IAE and its affiliates from claims related to the impacted engines that have accrued or may accrue prior to December 31, 2024. Spirit intends to discuss appropriate arrangements with Pratt & Whitney in due course for any Spirit aircraft that remain unavailable for operational service after December 31, 2024. Cautionary Statement Regarding Forward Looking Statements Forward-Looking Statements in this report and certain oral statements made from time to time by representatives of Spirit contain various forward-looking stateme

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: March 29, 2024 SPIRIT AIRLINES, INC. By: /s/ Thomas Canfield Name: Thomas Canfield Title: Senior Vice President and General Counsel

View Full Filing

View this 8-K filing on SEC EDGAR