Spirit AeroSystems reported a significant increase in losses during the second quarter of 2024, with net losses more than doubling to $415 million from $206 million in the same period last year. The company's financial performance was impacted by a decrease in 737 fuselage deliveries to its largest customer, Boeing, and ongoing challenges related to its Airbus A220 program.
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During the quarter, Spirit AeroSystems delivered 27 737 fuselages, a sharp decline from the 74 delivered in the second quarter of 2023. The company attributed the decrease in deliveries to production delays and quality issues with the 737 program. These challenges are particularly significant as Boeing aims to ramp up production of the 737 to 38 units per month by the end of the year. In addition to the 737 issues, Spirit AeroSystems also faced difficulties with its Airbus A220 program. The company recorded $25 million in forward losses related to the A220, contributing to a total of $214 million in net forward losses for the quarter. These losses highlight the ongoing challenges and cost pressures associated with the A220 program.
Spirit AeroSystems' financial health has been under scrutiny, with the company burning through $597 million in cash during the quarter, significantly higher than analysts' expectations. In response to the liquidity challenges, the company has drawn $200 million under a bridge-term loan facility and is exploring various options to improve its financial position. The company's adjusted loss per share for the quarter was $2.73, wider than the expected loss of 90 cents per share. Quarterly revenue also fell short of expectations, coming in at $1.49 billion compared to the estimated $1.59 billion.
Spirit AeroSystems' financial struggles come at a critical time, as Boeing recently announced its intention to buy back the supplier it spun off in 2005. The acquisition is expected to provide much-needed stability and support for Spirit AeroSystems as it navigates the challenges in the aerospace industry. As the company continues to address production delays, quality issues, and cost pressures, its ability to recover and stabilize its financial position will be closely watched by industry analysts and stakeholders.