Spirit Airlines (S64) (SAVE) , the Florida-based low-cost carrier, signed a memorandum of understanding to acquire 100 aircraft from the A320neo family, with an option for 50 more. With an average list price of $110.6 million per unit, this order could amount to $10 billion.
Delivered by 2027, the hundred aircraft will include a mix of A319neo, A320neo, and A321neo, powered by the Pratt & Whitney PW1100G-JM. “This new order represents another milestone for Spirit,” said Spirit Airlines President and CEO Ted Christie in a press release, adding that “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”.
In October 2018, Spirit operated a major expansion of its network by opening eleven new routes departing from Orlando International Airport (MCO), towards the Caribbean and Central and South America.
Based at Fort Lauderdale International Airport (FLL), Florida, Spirit is an ultra-low-cost airline that currently operates an Airbus-only fleet composed of 31 A319s, 64 A320s, 13 A320neos, and 30 A321s, with an average of 5.6 years.
The day the order was announced, Spirit published its third-quarter 2019 financial results, reporting $992.0 million of total operating revenue, an increase of 9.7 percent compared to the third quarter 2018, driven by a 17.7% increase in flight volume.
This is the first order that Airbus receives since the United States applied a 10% tariff on European aircraft. At the end of September 2019, the A320neo Family had received more than 6,650 firm orders from nearly 110 customers worldwide, according to Airbus. The same month, the manufacturer delivered its 9000th aircraft of the family.