Spirit Airlines May Cancel Airbus A320neo Orders Due to US Tariffs

Key Takeaways

• Spirit Airlines faces $1 billion in extra costs from new 10% U.S. tariffs on 92 Airbus A320neo orders.
• July 8, 2025 deadline may raise tariffs to 20%, doubling Spirit’s financial burden and risking fleet modernization.
• Spirit may postpone or cancel Airbus deliveries amid fragile post-bankruptcy recovery and competitive pressures.

Spirit Airlines Faces Uncertain Future Over Airbus A320neo Orders Amid U.S. Tariffs

Spirit Airlines is at a crossroads as it considers canceling or postponing its orders for new Airbus A320neo-family aircraft. This decision comes after the United States 🇺🇸 government imposed new tariffs on imports from the European Union 🇪🇺, including commercial aircraft and parts. The situation is urgent, with a key deadline approaching in July 2025 that could double the cost of these tariffs. The outcome will affect not only Spirit Airlines, but also its employees, passengers, and the broader U.S. airline industry.

What’s Happening: The Tariffs and Their Impact

In April 2025, the Trump administration put a 10% tariff on all imports from the European Union 🇪🇺, including commercial aircraft like the Airbus A320neo and their parts. This means that for every $110 million Airbus A320neo Spirit Airlines buys, the airline must pay an extra $11 million in tariffs. With 92 Airbus A320-family aircraft scheduled for delivery through 2031, the 10% tariff alone would add at least $1 billion to Spirit’s costs. If the tariff increases to 20% after July 8, 2025, the extra cost could double.

Spirit Airlines made this situation public in its most recent SEC 10-Q filing at the end of May 2025. The airline stated that these tariffs could have a “material adverse effect” on its business and might force it to postpone or cancel aircraft deliveries. This warning has been widely reported in the aviation press and has raised concerns across the industry.

Spirit Airlines’ Fleet and Orders: What’s at Stake

Spirit Airlines operates an all-Airbus fleet, which makes it especially vulnerable to tariffs on European aircraft. As of June 2025, Spirit’s fleet includes:

• 63 Airbus A320s
• 91 Airbus A320neos
• 29 Airbus A321s
• 30 Airbus A321neos

That’s a total of 213 aircraft. The airline has 92 more Airbus A320-family aircraft on order for delivery through 2031. All these planes are built in the European Union 🇪🇺 and are subject to the new tariffs.

In April 2024, Spirit and Airbus agreed to defer all A320neo deliveries scheduled from the second quarter of 2025 through the end of 2026. These deliveries are now pushed back to 2030–2031. Spirit will not receive any A320neo aircraft in 2025, but it will add four A321neo planes in the first quarter of 2025 and two leased aircraft later in the year. The airline plans to end 2024 with 215 aircraft and keep a fleet of 219 through 2025 and 2026, which is lower than its earlier target of 234 planes for 2025.

Why the Tariffs Matter: Financial and Operational Risks

The tariffs come at a difficult time for Spirit Airlines. The company recently emerged from Chapter 11 bankruptcy in March 2025, after a failed merger with JetBlue was blocked on antitrust grounds in March 2024. To stabilize its finances, Spirit sold 23 aircraft and furloughed pilots in late 2024. In the first quarter of 2025, Spirit reported a $289 million operating loss, though it posted a net profit of $61 million due to accounting gains after bankruptcy.

The new tariffs threaten Spirit’s fragile recovery. The extra costs could force the airline to delay or cancel its plans to modernize and expand its fleet. This would make it harder for Spirit to compete with larger U.S. airlines, many of which have more diverse fleets and are less exposed to tariffs on European aircraft.

Spirit’s CEO, Ted Christie, explained the company’s position:

“Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment. In addition, enhancing our liquidity provides us additional financial stability as we position the company for a return to profitability.”

The Tariff Timeline: What Happens Next?

The current 10% tariff is in place until July 8, 2025. This is a 90-day suspension of a higher 20% tariff. If the suspension is not extended, the tariff could rise to 20%, adding even more pressure on Spirit Airlines and other U.S. carriers that rely on Airbus aircraft.

Here’s what to expect in the coming weeks:

1. Tariff Review by July 8, 2025: The U.S. government must decide whether to keep the tariff at 10%, raise it to 20%, or renegotiate the terms.
2. Spirit’s Decision Window: Based on the tariff outcome and its financial situation, Spirit must decide whether to proceed with, defer, or cancel its Airbus orders.
3. Negotiations: Spirit may seek further deferrals or renegotiate its agreement with Airbus. The airline could also explore other fleet options, though there are few alternatives in the same aircraft segment.
4. SEC Disclosures: Any major decision, such as canceling or further deferring orders, will be reported in future SEC filings.

How Tariffs Affect Spirit Airlines and the Industry

Fleet Modernization at Risk

Spirit’s strategy relies on having a modern, fuel-efficient fleet. The Airbus A320neo is a key part of this plan because it uses less fuel and costs less to operate than older planes. If Spirit cannot afford to buy these new aircraft due to tariffs, it may have to keep flying older, less efficient planes. This could increase costs, reduce reliability, and make it harder to compete on price.

Financial Recovery Threatened

Spirit’s financial position is still weak after bankruptcy. The extra $1 billion (or more) in tariff costs could threaten its recovery and long-term survival. If the airline cancels or delays aircraft orders, it may not be able to grow or even maintain its current level of service.

Supply Chain Disruption

Tariffs also apply to aircraft parts and maintenance supplies. This could make it more expensive and harder for Spirit to keep its planes in good working order. Delays or shortages in parts could lead to more flight cancellations or delays, affecting passengers.

Competitive Pressure

Other U.S. airlines, especially larger ones, have more diverse fleets and are less exposed to tariffs on European aircraft. Some of these airlines also offer low-fare options, putting more pressure on Spirit’s market share. If Spirit’s costs go up, it may have to raise fares or cut routes, making it less attractive to price-sensitive travelers.

Industry and Policy Perspectives

Spirit Airlines

Spirit sees the tariffs as a serious threat to its business model and recovery plan. The airline’s all-Airbus fleet means it cannot easily switch to another manufacturer, like Boeing, because there is no direct competitor to the A320neo in the U.S. market.

Airbus

Airbus faces uncertainty in its U.S. sales and deliveries. If Spirit cancels or delays orders, Airbus may have to adjust its production plans, which could affect jobs and revenue in the European Union 🇪🇺.

U.S. Government

The Trump administration imposed the tariffs as part of a broader trade policy aimed at the European Union 🇪🇺. The goal is to use tariffs as leverage in trade negotiations, but this approach risks harming U.S. airlines and consumers by raising costs and reducing competition.

Competitors

Major U.S. airlines with more diverse fleets are less affected by the tariffs, but the entire industry could face higher costs if tariffs remain in place. This could lead to higher fares and fewer choices for travelers.

Background: How Did We Get Here?

Spirit Airlines has faced a series of challenges in recent years:

• Failed Merger: Spirit tried to merge with JetBlue, but the deal was blocked by regulators in March 2024.
• Bankruptcy: The airline filed for Chapter 11 bankruptcy and emerged in March 2025 after selling aircraft and furloughing staff.
• Fleet Deferrals: In April 2024, Spirit and Airbus agreed to push back A320neo deliveries to 2030–2031.
• Tariffs Imposed: On April 9, 2025, the U.S. government imposed a 10% tariff on EU imports, including aircraft. A 90-day suspension of a 20% tariff is in effect until July 8, 2025.

What’s Next for Spirit Airlines?

The next few weeks are critical for Spirit Airlines. The outcome of the tariff review on July 8, 2025, will determine whether the airline can afford to proceed with its Airbus A320neo orders. If tariffs stay at 10% or rise to 20%, Spirit may have to cancel or delay its orders, which would affect its ability to modernize its fleet and compete in the market.

If Spirit cancels or defers orders, Airbus may face production and revenue impacts, and the U.S. ultra-low-cost carrier (ULCC) sector could see reduced capacity and higher fares. This would affect not only Spirit’s employees and passengers, but also the broader U.S. airline industry.

What Should Stakeholders Do?

For Spirit Airlines Employees

• Stay Informed: Watch for updates from Spirit’s management and official filings.
• Prepare for Change: Be aware that fleet changes could affect staffing levels and job security.

For Passengers

• Monitor Flight Schedules: Changes in Spirit’s fleet could lead to schedule adjustments or route changes.
• Expect Possible Fare Increases: Higher costs may be passed on to travelers if tariffs remain in place.

For Investors

• Review SEC Filings: Spirit will disclose any major decisions in its official filings.
• Assess Risk: The airline’s financial recovery depends on the outcome of the tariff review and its ability to manage costs.

For Policy Makers

• Consider the Impact: Tariffs aimed at the European Union 🇪🇺 can have unintended consequences for U.S. airlines and consumers.
• Engage in Negotiations: Work to find solutions that protect U.S. industry without harming domestic carriers.

Official Resources

For the latest updates on Spirit Airlines’ financial status and fleet plans, visit Spirit Airlines Investor Relations. For authoritative information on U.S. tariffs and trade policy, see the U.S. Department of Commerce.

Industry Analysis and Outlook

Aviation analysts point out that Spirit Airlines has few good options. There is no direct U.S. alternative to the Airbus A320neo-family, so switching to Boeing is not practical. Deferring orders is seen as a likely short-term move, but if tariffs remain high or Spirit’s financial situation worsens, outright cancellation is possible. The uncertainty of U.S.-EU trade relations makes it hard for airlines like Spirit to plan for the future.

According to analysis by VisaVerge.com, the ongoing “on-again, off-again” nature of tariffs creates major planning challenges for U.S. airlines that rely on Airbus. The next key date is July 8, 2025, when the 90-day suspension of the higher tariff expires. The outcome will shape Spirit’s future and could have ripple effects across the airline industry.

Summary Table: Spirit Airlines Airbus A320neo Orders and U.S. Tariffs

Takeaways and Next Steps

• Spirit Airlines’ future fleet plans depend on the outcome of the U.S. tariff review in July 2025.
• A rise in tariffs could force Spirit to cancel or delay Airbus A320neo orders, affecting its ability to modernize and compete.
• The decision will impact employees, passengers, investors, and the broader airline industry.
• Stakeholders should monitor official announcements and prepare for possible changes in fleet size, routes, and fares.

For ongoing updates, follow Spirit’s SEC filings and press releases, and check official government sources for the latest on U.S. tariffs and trade policy. The next month will be critical in determining whether Spirit Airlines can move forward with its Airbus A320neo orders or must make tough choices that could reshape its future.

Learn Today

Airbus A320neo → A family of fuel-efficient commercial aircraft manufactured by Airbus with advanced engine technology.
Tariffs → Taxes imposed on imported goods, increasing costs for buyers such as Spirit Airlines on Airbus planes.
Chapter 11 bankruptcy → A legal process allowing companies to restructure debt while continuing operations during financial distress.
SEC 10-Q filing → A quarterly financial report filed with the U.S. Securities and Exchange Commission detailing company risks and performance.
Deferred deliveries → The postponement of scheduled aircraft deliveries to later dates due to financial or operational reasons.

This Article in a Nutshell

Spirit Airlines must decide by July 8, 2025, whether to proceed with Airbus A320neo orders amid rising U.S. tariffs, risking costly fleet delays and financial setbacks in its fragile recovery after bankruptcy.
— By VisaVerge.com