Spirit Airlines disclosed Monday that it will lay off approximately 260 pilots and delay the delivery of planes from the second quarter of 2025 to 2026 until at least 2030 to save money after a difficult fiscal year.

The airline estimates the layoffs will help boost the company's cash value by $340 million by 2026. Deliveries of aircraft scheduled for 2027 through 2029 will continue as planned.

The furloughs will be effective beginning September 1, 2024.

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“This amendment to our agreement with Airbus is an important part of Spirit's comprehensive plan to strengthen profitability and strengthen our balance sheet,” Ted Christie, Spirit's president and CEO, said in a statement. company release. “The postponement of these aircraft gives us the opportunity to realign the business and focus on the core airline while we adapt to changes in the competitive environment. In addition, our increased liquidity provides us with additional financial stability as we position the Company for a return to profitability.”

In the fourth quarter of 2023, the airline saw a net loss of $183.7 million, ending fiscal 2023 with revenue that fell 5% to $1.32 billion.

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“The Spirit team is 100% clear and focused on the adjustments we are currently making and will continue to make throughout 2024 to return us to cash flow generation and profitability,” Christie. said at the time.

The airline also had delivery problems with its engine provider, Pratt & Whitney.

In January, a federal judge blocked Spirit's attempted mega-merger with JetBlue, which was estimated to be worth about $3.8 billion after the US Department of Justice argued that the merger would harm competition in the aviation sector.

Spirit Airlines was down over 74% in a one-year period as of Tuesday afternoon.