Spirit AeroSystems, the fuselage maker for Boeing's 737 MAX 9 planes, recently announced that it is unable to reasonably estimate the financial impact of an incident that occurred last month. This incident led to a temporary grounding of the 737 MAX 9 planes and a production cap on Boeing, the planemaker.
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The incident in question involved a door plug blowout in mid-air. In response to this, the U.S. Federal Aviation Administration (FAA) took the unprecedented step of capping Boeing's 737 production at 38 planes per month. This is lower than the production rate that the planemaker had previously advised its suppliers. Spirit AeroSystems, in a regulatory filing, flagged the impact of this incident as part of its risk factors. The company provided a general warning that production levels for the 737 MAX or other aircraft programs could be reduced beyond current expectations.
In 2023, 45% of Spirit's revenue came from the 737 program. The company stated that changes in production schedules could impact its ability to comply with contractual obligations. Additionally, such changes could also affect its liquidity position and financial condition.
In an effort to limit any defects in its production of 737 fuselages, Spirit announced this month that it would invest in autonomous technology. Despite these measures, the company maintains that it is currently unable to estimate the financial impact of the 737 MAX 9 incident.