Supplier Spirit Aerosystems Issue Delays Boeing's 737 Deliveries

Boeing Co BA has recently encountered another setback regarding its 737 MAX. A supplier-related issue with Spirit Aerosystems Holdings, Inc SPR has emerged, wherein inappropriately drilled holes have been discovered on the aft pressure bulkhead of the aircraft. This component is pivotal in the plane's pressure sealing system, ensuring the aircraft remains safe from potential ruptures due to elevated internal pressures.

This new complication means Boeing's immediate deliveries will experience a setback. The aerospace giant is also contemplating whether this hiccup will make them fall short of their 2023 goal of rolling out at least 400 737s, Reuters reports.

In April, Boeing brought to light that Spirit had made errors in attaching brackets connecting the aft fuselage to the aircraft's vertical tail.

The newest issue confirms a postponement for the inaugural MAX 8 delivery destined for Malaysia Airlines, which was likely to happen around August 28.

Spirit offers some respite by stating that this "elongated" hole issue does not plague all 737 fuselages. They utilize multiple providers for the aft pressure bulkhead. At this juncture, Boeing's perspective is that the flaw primarily affects a segment of its top-selling MAX 8 series. Nevertheless, the firm is assessing its repercussions on the 737 Next Generation series.

Despite these challenges, Boeing continues to dispatch unaffected 737s. Spirit has also revamped its production techniques to rectify this predicament. Additionally, the Federal Aviation Administration has indicated its awareness regarding the matter and assures it doesn't jeopardize flight safety.

Price Action: SPR shares traded lower by 7.49% at $21.25 premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.