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On Tuesday, Spirit AeroSystems Holdings Inc. (SPR.N) shares fell by 13% after its key supplier Boeing Co. (BA.N) revealed that the planemaker significantly reduced its orders for shipment this year.
“Boeing indicates in the June 19 letter that the reduction is due to Covid-19’s impact and accumulated inventory of Spirit’s [Boeing 737] products,” the company said in a regulatory filing.
According to the aerospace company, Spirit’s Chief Executive Officer Tom Gentile and other executives were in Seattle this week to discuss its production rates and the possibility of further financial assistance from Boeing Co.
Boeing said that it was “working closely with Spirit to adjust delivery schedules and rate profiles as appropriate” during the aerospace industry’s downturn.
Boeing’s stocks were down by 1.5% on Tuesday morning.
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