Boeing has taken a significant step to fortify its supply chain by agreeing to provide up to $350 million in advance payments to Spirit AeroSystems, a key supplier facing substantial financial challenges. Spirit, which manufactures fuselages for Boeing’s 737 MAX and other aircraft, has been dealing with high inventory levels and diminished operational cash flows. These issues have been compounded by a recent machinists’ strike at Boeing, which disrupted production schedules and further strained Spirit’s operations.
The financial agreement requires Spirit to repay 25% of the advance quarterly in 2026, indicating a structured plan to restore the supplier’s financial health. This move is part of Boeing’s broader strategy to ensure stability within its supply chain and prevent potential disruptions in aircraft production. The advance payment is expected to support Spirit’s production capabilities, helping to maintain the timely delivery of aircraft components essential to Boeing’s operations.
In a parallel development, Airbus has agreed to provide Spirit AeroSystems with a non-interest-bearing line of credit amounting to $107 million. This funding is designated for production related to various Airbus programs and aims to facilitate the continued delivery of components to Airbus. These financial interventions from both Boeing and Airbus underscore the critical role that Spirit AeroSystems plays in the aerospace supply chain and the importance of maintaining its operational health to support the broader industry.
