Subscription Required

By the Leeham News Team

 Aug. 9, 2024, © Leeham News: The financial results for the first half of 2024 are in for the corporations of the aviation industry and it has been a mixed bag for many. Notably, Tier 1 supplier Spirit Aerosystems (SA) faces increasing cash flow pressure, despite reporting a 9% increase in revenues.

President and Chief Executive Officer Pat Shanahan was supportive of employees. “This has been a dynamic and eventful period for the company, and I want to extend my gratitude to each employee for their dedication and hard work.”

Profitability, Free Cash Flow (FCF) and Cash on hand were driven down by a joint product verification process on the 737 MAX shipsets, to ensure conformity of fuselages prior to transportation to Boeing’s (BA) final assembly site in Renton (WA). During the second quarter, a paltry 27 units were shipped to BA, averaging nine a month. Quarterly and half year deliveries were either relatively flat or down, over 2023.

Source: Spirit Aerosystems 1H2024 Results

Meanwhile, deliveries to Airbus (AB) were up across the board, with the exception of the A330 program, which dipped slightly for the first half. Year-over-year, SA shipped 37 more shipsets during the second quarter and 52 more over the half-year to Airbus.

While Boeing has faced increased scrutiny from regulators, which has trickled down to SA, why does Spirit seem able to produce components for Airbus that pass inspection and enter into the AB supply chain, in increasing numbers?