Spirit says it is unable to estimate impact of 737 MAX 9 incident
Reuters
Published Feb 22, 2024 08:29PM ET
(Reuters) - Fuselage maker Spirit AeroSystems (NYSE:SPR) said on Thursday it was unable to reasonably estimate the financial impact of an incident last month that led to a temporary grounding of Boeing (NYSE:BA) 737 MAX 9 planes and a production cap on the planemaker.
Spirit, in a regulatory filing, flagged the impact as part of its risk factors and provided a general warning that production levels for the 737 MAX or other aircraft programs could be reduced beyond current expectations.
After a door plug blowout in mid-air, the U.S. Federal Aviation Administration last month took the unprecedented step of capping Boeing's 737 production at 38 planes per month, which is lower than the planemaker had previously advised suppliers.
Spirit said in the filing that 45% of its revenue had come from the 737 program in 2023 and added changes in production schedules could impact its ability to comply with contractual obligations as well as its liquidity position and financial condition.
The company said this month it would invest in autonomous technology to limit any defects in its production of 737 fuselages.
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Written By: Reuters
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