In light of a difficult third quarter and ongoing issues with Pratt & Whitney engines, Spirit Airlines has announced the suspension of new pilot and flight attendant training. The budget carrier, based in Miramar, Florida, reported a third-quarter loss and projected another for the final quarter of 2023.

According to company memos seen by CNBC, Spirit Airlines plans to suspend training for new pilots and flight attendants starting in November "until further notice." This decision comes as the airline prepares for slower growth due to softer demand and the anticipated grounding of several aircraft for inspections related to a manufacturing problem with certain Airbus planes' engines.

Greg Christopher, Vice President of Flight Operations at Spirit, explained in a memo to pilots that the company had already slowed down hiring and captain upgrades. However, recent developments have necessitated the suspension of all new-hire training efforts. The airline is also offering voluntary time off to cabin crew members, as mentioned in a memo by Tina Milton, Vice President of Inflight Experience.

According to the airline, these decisions were not taken lightly but are necessary to align crew staffing levels with operational needs given the number of aircraft that can be operated. Spirit Airlines expects to ground an average of 26 Airbus A320neo planes for engine inspections. Pratt & Whitney, the manufacturer of these engines, disclosed a manufacturing defect in August.

The carrier anticipates 13 grounded planes in January, with the number rising to 41 by December of the following year. Currently, Spirit Airlines operates a fleet of 202 Airbus planes. As a result of these developments, the airline's growth projections for the near future have significantly decreased, as stated in the company's filing.

Spirit Airlines is currently in talks with Pratt & Whitney regarding compensation for the engine issue. RTX, a unit of Pratt & Whitney, estimates that repairs will take between 250 and 300 days, causing approximately 350 planes with geared turbofan engines to be grounded worldwide between 2024 and 2026.

In their latest earnings release, Spirit Airlines reported a net loss of $157.6 million, more than four times the loss from the previous year. The airline also expects negative margins for the remaining three months of 2023. CEO Ted Christie expressed disappointment with the slow return to normal demand and pricing, citing discounted fares for the pre-Thanksgiving period.

Meanwhile, JetBlue Airways is attempting to acquire Spirit Airlines, a deal that is currently facing opposition from the Justice Department and is set to go to trial next week in Boston. On the other hand, fellow discount carrier Frontier Airlines continues to hire new flight attendants, pilots, and mechanics, indicating a different trajectory for the industry.

As Spirit Airlines navigates the challenges posed by a difficult quarter and ongoing engine issues, the carrier has made the decision to temporarily halt new pilot and flight attendant training. This strategic move aims to ensure operational efficiency while addressing the need to ground multiple aircraft for inspections.