Boeing faces a fresh setback after workers for key supplier Spirit AeroSystems voted to strike, prompting Spirit to halt its production lines. Boeing stock fell, SPR stock fell harder, on Thursday.
"In light of the decision to strike by Spirit AeroSystems employees represented by the International Association of Machinists and Aerospace Workers today, Spirit will suspend factory production prior to the expiration of the contract," Spirit announced in a news release late Wednesday.
The stoppage at a Spirit factory in Wichita, Kansas, began with the first shift on Thursday. The strike is set to begin just after midnight on Saturday, the union said.
Spirit makes fuselages and other parts for Boeing's top-selling 737 Max, 787 Dreamliner and other jets. It also supplies components for Airbus.
In April, Boeing reported problems with fittings on Spirit fuselages that were delaying 737 Max production and delivery ramp amid strong travel demand. Further, the 737 issue hit Spirit's Q1 earnings by $17 million.
Meanwhile, jet orders generated for Netherlands-based Airbus during this week's Paris Air Show are thus far outpacing those for Dow Jones aviation giant Boeing. Some analysts regard new Boeing and Airbus jet orders as irrelevant amid persistent supply challenges, saying deliveries are key. The Paris event ends Sunday.
Boeing Stock, SPR Stock
Shares of Boeing fell just over 3% to 205.61on the stock market today. Three straight days of losses have snuffed Boeing stock's four-month base-building effort. BA stock fell slightly below the 50-day moving average in heavy trade Thursday.
SPR stock plunged 9.4% to 26.88, back below its 50-day average. Shares did pare intraday losses.
Airbus stock shed 1.8% to 34.91. That left EADSY stock just above a 34.85 buy point from a double-bottom base, which shares had cleared last week.
Boeing and Airbus are racing to increase production to meet robust demand after the pandemic slump. But supply woes persist for both, including their top-sellers: Airbus's A320 and Boeing's 737 Max, both narrow bodies.
