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Boeing Stock Drops as Supplier Acknowledges Quality Issue


Boeing’s stock experienced a drop on Thursday following an admission by its supplier, Spirit AeroSystems, of a quality issue affecting certain 737 models.

Shares in Boeing (ticker: BA) saw a decline of 1.8% during premarket trading, while Spirit (SPR) faced a 4.1% decrease.

According to a statement by Spirit AeroSystems, “We are aware of a quality issue involving elongated fastener holes on the aft pressure bulkhead on certain models of the 737 fuselage produced by Spirit AeroSystems. Boeing has determined that there is no immediate safety of flight concern associated with this issue for the 737 fleet and that the in-service fleet may continue to operate.”

The main concern now is whether this issue will impact the delivery of 737s to Boeing from Spirit and subsequently from Boeing to other customers. However, Spirit stated, “Based upon what we know now, we believe there will not be a material impact to our delivery range for the year related to this issue.”

Reuters reported that Boeing acknowledged the defect would lead to delays in near-term deliveries and could potentially cause the company to fall short of its annual delivery targets. However, Boeing has yet to respond to a request for comment.


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