Boeing's Lifeline: Spirit AeroSystems Secures $350 Million

Boeing provides Spirit AeroSystems with $350 million in advance payments to support the cash-strapped supplier amidst financial and production challenges. Spirit continues to face cash burn and inventory issues while working with customers to stabilize its operations. Advanced payments are aimed at boosting liquidity and maintaining production rates.

Boeing has committed to advancing up to $350 million to Spirit AeroSystems, delivering a crucial financial relief to the supplier amid persistent monetary and operational hurdles. The advance payments are designed to improve Spirit's liquidity following nearly four years of enduring losses.

Spirit AeroSystems announced that the funding is intended to produce Boeing products at required rates, address high inventory levels, and mitigate reduced operational cash flows. The company has been grappling with decreased deliveries and escalating factory expenses. The recent agreement is expected to curb the lingering impact of a 53-day strike by Boeing employees.

Despite these tribulations, Spirit AeroSystems remains obligated to repay the amount by 2026. The company's shares reported a modest increase of 1.2% following the news. In parallel, Boeing looks to stabilize its supply chain and production output, with plans to reignite its 737 MAX production as machinists return to their posts.

(With inputs from agencies.)