Spirit AeroSystems Faces Financial Uncertainty

(Reuters) – Spirit AeroSystems, a key supplier to U.S. planemaker Boeing (NYSE:BA), warned on Tuesday there was "substantial doubt" about the company's ability to continue as a going concern.

Last month, Wichita, Kansas-based Spirit Aero reported that it is rapidly depleting its cash reserves due to the impact of a strike by Boeing's U.S. factory workers, which has significantly affected the supplier. The company's cash balance at the end of the third quarter of 2024 stood at $218 million, as noted in an earlier filing.

This announcement coincides with Boeing's efforts to increase production of its 737 MAX after a weeks-long strike, which concluded on Monday night, disrupted the output of its best-selling aircraft and others.

Spirit Aero, responsible for manufacturing the fuselage for the MAX, could not be reached for immediate comment, while Boeing chose not to comment.

The company also confirmed that it had fully utilized a $350-million bridge loan that was arranged when Boeing agreed to acquire the supplier in June, corroborating a prior report from Reuters.