Spirit AeroSystems threatened by further production cuts into 2022

Having already laid off thousands of its workforce, Spirit AeroSystems (Spirit), which makes the fuselage for the troubled Boeing 737 MAX, is in discussions with lenders over loosening debt terms.

Kansas-based Spirit had already been asked by Boeing to cut back on production owing to further knock-on effects of the COVID-19 pandemic, resulting in what looks like an annual delivery of 70 units as opposed to the original 200 or so. Subsequently, Spirit warned last month it was at risk of breaching its financial covenants.

For 2021 deliveries are expected to fall just short of 200, roughly half the previously anticipated number, while for 2022 the number of units is now forecast to be 400 instead of 500 units.

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