Spirit Airlines Faces Devastating Setbacks And Risk Of Canceled Airbus A320neo Deliveries Due To Soaring US Tariffs On European Union Imports

Published on June 4, 2025

Spirit Airlines is facing significant challenges as escalating US tariffs on European Union imports threaten to delay or cancel its Airbus A320neo orders, a key part of the airline’s fleet expansion strategy. The rising tariffs, currently set at 10% and potentially increasing to 20%, pose a severe risk to the airline’s financial recovery, disrupting its aircraft acquisition plans. With the airline already navigating post-bankruptcy restructuring and heightened competition, these tariff hikes could derail Spirit’s growth prospects, forcing it to scale back its fleet expansion and causing potentially devastating setbacks to its operations.

Spirit Airlines (NK) has alerted that its Airbus A320neo-family aircraft orders may face delays or cancellations as a result of increasing tariffs on imports from the European Union (EU). The airline, which operates primarily from Fort Lauderdale-Hollywood International Airport (FLL), has highlighted the escalating trade tensions as a significant risk to its fleet strategy and overall financial recovery.

Impact of Trade Tensions on Fleet Planning

Spirit Airlines, a well-known low-cost carrier, recently emerged from Chapter 11 restructuring. The airline disclosed in an SEC filing that the rising tariffs could increase the costs of Airbus aircraft and parts, making it more difficult to meet its fleet expansion targets. These tariffs, which are imposed on EU goods under U.S. trade policy, present an additional financial burden, exacerbating the challenges Spirit faces as it works to recover from bankruptcy and regain profitability.

The airline specifically pointed to the possibility of the tariff rates increasing from 10% to 20%, should the 90-day suspension—initiated on April 9—expire without an extension. Such an increase would significantly affect the price of aircraft and parts, which could result in delays or cancellations of Spirit’s planned deliveries of new aircraft. The airline has emphasized that the uncertainty surrounding the duration and scale of these tariffs presents a material risk to its operations, financial health, and future growth prospects.

Spirit’s Fleet and Its Dependence on EU Imports

Spirit Airlines operates an all-Airbus fleet, and it is heavily reliant on imports from the EU. This makes the airline particularly vulnerable to disruptions caused by the trade tensions between the U.S. and the EU. As of 2025, Spirit Airlines has a fleet consisting of 213 aircraft, including 63 Airbus A320s, 91 Airbus A320neos, 29 Airbus A321s, and 30 Airbus A321neos.
All of these aircraft are produced by Airbus, based in the EU, meaning that any rise in tariffs would directly impact the cost of both new aircraft and essential replacement parts.

The airline’s reliance on Airbus means it depends on the steady importation of aircraft parts from the EU for routine maintenance and repairs, making the potential for tariff hikes a critical issue. With tariffs potentially rising to 20%, Spirit Airlines could face significant increases in the costs of these necessary components. This could force the airline to scale back its fleet expansion plans, as it would struggle to manage the rising costs of acquiring new aircraft and keeping its current fleet operational.

Challenges to Financial Recovery

Spirit Airlines is currently navigating the recovery phase following its Chapter 11 bankruptcy reorganization. The airline restructured its finances in March 2025, and while it has made progress, the road to recovery remains challenging. In the first quarter of 2025, Spirit reported a \$289 million operating loss, although it posted a net profit of \$61 million largely due to accounting gains following its exit from Chapter 11.

Despite this temporary boost, Spirit remains under pressure to stabilize its finances and improve its operational efficiency. The uncertainty surrounding trade tensions and the rising tariffs only adds to this pressure, potentially complicating the airline’s recovery trajectory. The costs associated with higher tariffs could drain the airline’s financial resources, diverting attention away from its recovery efforts and affecting its long-term growth potential.

Moreover, Spirit faces increasing competition from larger U.S. carriers, which have expanded their low-cost fare offerings. These competitors are aggressively targeting the same budget-conscious travelers that Spirit traditionally caters to, undercutting the ULCC’s market share. The rise in tariffs, combined with the increased competition, makes it even more difficult for Spirit to regain its footing and remain competitive in a crowded marketplace.

Supply Chain Vulnerabilities and Rising Costs

The impact of trade tensions extends beyond just aircraft acquisitions. Tariffs could disrupt the supply chain for Spirit Airlines, raising the cost of maintenance and spare parts. Given that the airline operates a fleet exclusively made up of Airbus aircraft, any disruption in the supply chain could lead to delays or higher costs for repairs and part replacements. This, in turn, would increase operational expenses, straining the airline’s finances further.

In addition to tariffs, Spirit must contend with other external factors, such as commodity price volatility, changes in consumer spending patterns, and weaker demand in certain markets. These factors could hinder the airline’s financial recovery, making it harder to implement its long-term fleet expansion plans and maintain profitability.

Competitive Pressure and the Struggle for Market Share

Spirit’s caution regarding possible delays in aircraft deliveries arises in the context of fierce competition from major U.S. carriers. carriers that have expanded their own low-cost offerings. Larger airlines, such as American Airlines, Delta, and Southwest, have increasingly focused on providing budget-friendly fares, eroding Spirit’s traditional market share. These larger carriers have far greater resources and established customer bases, making it harder for ULCCs like Spirit to differentiate themselves and maintain profitability.

As Spirit navigates these competitive pressures, the airline must also contend with rising tariffs that will increase its aircraft acquisition costs. The combination of higher tariffs and increased competition creates a challenging environment for Spirit Airlines as it seeks to rebuild its operations and stabilize its finances. The potential for delays in its aircraft deliveries further compounds these challenges, threatening the airline’s ability to grow its fleet and sustain its business in the coming years.

Spirit Airlines is at risk of major setbacks in its fleet expansion as rising US tariffs on European Union imports threaten to delay or cancel its Airbus A320neo orders. The escalating trade tensions could severely impact the airline’s financial recovery and operational growth.

Looking Ahead

As Spirit Airlines faces the combined challenges of rising tariffs and intensifying competition, it must carefully assess its next steps to secure its future. The potential for increased costs due to tariffs could delay its plans for fleet expansion, while the competitive pressure from larger carriers may make it even more difficult to retain its market share. Spirit will need to navigate these challenges strategically if it hopes to regain its financial footing and continue its recovery in the years ahead.