Spirit AeroSystems Calls On Boeing & Airbus To Share Inflation Burden: Report

Spirit AeroSystems Holdings, Inc. SPR has reportedly asked Boeing Company BA and Airbus SE EADSY to share a more significant portion of the financial strain brought about by inflation, deeming their contracts currently 'unsustainable.'

In the first half of 2023, Spirit carried about $215 million in charges on the Boeing 787 Dreamliner and Airbus A220 and A350 programs, Reuters reported, quoting Spirit CEO Tom Gentile.

The charges were due to wage inflation, parts shortages, and greater regulatory scrutiny, the report added.

Also Read: Supplier Spirit Aerosystems Issue Delays Boeing's 737 Deliveries

"With both Boeing and Airbus, we've been an open book in terms of sharing all of the cost data so they understand and know that we've been working on different opportunities (to cut costs) and have exhausted those," Gentile said in an investor conference, which Reuters noted. 

Spirit is finding the current situation financially unsustainable and is in talks with Boeing and Airbus to address these challenges.

Price Action: SPR shares are trading higher by 0.57% to $19.30 premarket on the last check Friday.