Spirit Aero’s Q4 2020 revenue plummets 55% on back of Boeing woes

Spirit AeroSystems Holdings (Spirit) has reported worse-than-expected results for its fourth-quarter 2020 operations, notably a 55% drop in revenue compared to the same quarter in 2019. The drop in revenue is a result of Boeing, one of its largest customers, struggling with the grounding of the 737 MAX and downturn in demand for new aircraft during the current COVID-19 pandemic.

Compared to 153 727 MAX shipsets delivered in 2019, Spirit delivered only 19 in 2020. Having been forced to cut back on production last year, with the 737 MAX now taking to the skies again will hopefully herald a ramp-up in production, thus benefitting Spirit. Spirit had also reported a drop in shipset deliveries to Boeing’s main competitor, Airbus, another of its major customers. Spirit’s total deliveries of shipsets, or complete sets of parts, fell 48.9% to 231 units for the fourth quarter of 2020.

“2020 was one of the most challenging years in aviation history. For Spirit, the 737 MAX grounding and the COVID-19 pandemic created a dual-crisis,” Spirit Chief Executive Officer Tom Gentile said. Spirit posted a loss of US$295.9 million, or US$2.85 per share, for Q4 ending December 31, 2020, compared to a profit of US$67.7 million, or 65 cents per share, for Q4 ending December 31, 2019. Total revenue plummeted 55.3% to US$876.6 million for the quarter.