Spirit AeroSystems (NYSE:SPR) shares dropped more than 20% after it identified a quality issue affecting near-term deliveries of certain Boeing 737 models. According to Boeing, a non-standard manufacturing process was used during the installation of two fittings in the aft fuselage section of some 737-7, 737-8, 737-8-200, and P-8 planes, creating the potential for non-conformance to required specifications.
The quality issue that has been identified by Spirit AeroSystems will impact a significant number of undelivered Boeing 737 MAX planes, including those currently in production and storage. It is also expected to cause delays in upcoming deliveries.
Spirit is currently working on an inspection and repair solution. Bernstein believes the issue is a bigger problem for Spirit than for Boeing.