Spirit AeroSystems postponed its financial forecast for the next year, highlighting ongoing concerns with the production rates of the Boeing 737 MAX and cost negotiations with Airbus regarding the A220 program.
The delay in forecasting comes a month after an Alaska Airlines Boeing 737 MAX 9 suffered an explosive decompression due to a poorly sealed door, reigniting controversy over the aircraft’s quality and safety standards.
The incident forced the Federal Aviation Administration (FAA) to restrict increasing the production of the 737 MAX series, though the duration of this limitation remains unspecified.
Interim CEO of Spirit AeroSystems, Patrick Shanahan, emphasized the company’s commitment to product quality and safety: «The quality and safety of what we produce is the most important thing of all«.
The production limitation on the 737 MAX poses significant logistical and financial challenges for Spirit AeroSystems, particularly in managing parts inventory and cash flow. Despite these obstacles, Boeing reaffirmed its intention to continue purchasing components from Spirit and other suppliers, though the situation threatens to exacerbate existing supply chain bottlenecks.
Financial Results for 2023: Last Quarter on the Rise
Financially, Spirit AeroSystems has witnessed a notable impact from recent challenges, with its shares decreasing by 15.8% since the incident in January. However, the company has shown resilience in its latest financial report, announcing an adjusted profit of 48 cents per share for the quarter ending in December 2023, a significant improvement from the loss reported in the same period the previous year.
Quarterly revenues soared by 37% to $1.81 billion, driven by increased parts deliveries to both Boeing and Airbus.
