JPMorgan says that just when Boeing (BA) seemed poised to boost 737 production and exceed 2023 delivery guidance, reports came out after the close that an aft fuselage problem at supplier Spirit AeroSystems (SPR) will slow 737 deliveries to airlines. The implication is that there is pressure on 2023 deliveries at both companies, though just how much is to be determined, the analyst tells investors in a research note. The firm views the news as disappointing for both companies but sees more negative financial exposure at Spirit than at Boeing. It believes the new quality lapse will not be hard to fix on incremental 737s from Spirit’s Wichita line. However, Spirit is struggling with execution across the portfolio and this must improve to win back investor confidence, JPMorgan contends.
Published first on TheFly
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