By Adriano Marchese
Spirit Aviation Holdings will receive up to $195 million in credits as compensation for inspections that its faulty Pratt & Whitney engines will require.
The airline said Monday that it has entered into an agreement with International Aero Engines, an affiliate of Pratt & Whitney, for the monthly credits through the end of 2025.
Spirit expects to receive about $150 million to $195 million, depending how many days the planes are unavailable throughout the year because of the engine issue.
In return, Spirit agreed to release IAE and its affiliates from claims related to the impacted engines that have accrued or may accrue.
The engines were recalled last week after Pratt & Whitney had said it would accelerate inspection of the PW1100G-JM geared turbo fan after a condition was found in the powdered metal used to manufacture certain engine parts.
The engines power the A320neo aircraft.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
06-09-25 0655ET
