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Spell AeroSystems shares fell more than 3% after the loss of a major Boeing supplier due to the Boeing supplier’s corolliner demand impacting the jetliner’s demand.
Wichita, Kansas-based manufacturer of fuses and other aircraft parts lost $ 256 million in the second quarter from a $ 168 million profit a year earlier. The company has been challenged since the March 2019 grounding of the 737 MAX following two fatal accidents. On Friday, Spirit said it was cutting 1,000 more jobs as production rates plummeted.
Last week, Boeing detected lower production targets for not only the 737 MAX but also double-isle planes used for long-haul international flights, routes on which the epidemic has taken the most control.
Spirit Aerosystems said on Tuesday that it lost $ 194 million due to lower production of the Boeing 787 Dreamliner and competitive Airbus A350.
The financial losses of airlines worldwide are increasing due to coronovirus and some people are postponing or canceling deliveries to reduce their costs.
Spirit shares declined nearly 3% in late-morning trading, while the S&P 500 lost nearly 0.2%.