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Spirit Aerosystems costs 737 production issue at US$31 million
May 4th 2023
Spirit Aerosystems said the disruption caused by a quality issue on vertical fin attach fittings on certain 737 fuselages and the rework required to repair impacted units is estimated to cost US$31 million in full-year gross profit. Read More » Of the US$31 million, the company has booked a US$17 million impact on its latest quarterly results and noted additional costs are expected. They include “costs Boeing may assert” to repair certain models of previously delivered units and potential warranty expenses related to in-service 737s with this issue. “The current assessment is the repair work will be completed on available units in Wichita by the end of July. Spirit also has started to build and deliver new units with the revised process,” it said. The company reported a net loss of US$281 million for the three months to March 31 compared with a net loss of US$53 million in the same months in 2022.
