Wichita Supplier Pauses 737 Work as Backlog Clogs Production Line

Spirit AeroSystems is temporarily laying off between 250 and 350 employees at its Wichita facility, citing an overproduction of parts for the Boeing 737. The furloughs, which begin May 12 and are expected to last about 30 days.

They will affect employees working in 737 fabrication and composite thrust reverser components. In a company email to staff, Spirit blamed the furloughs on the fact that it “overproduced and accumulated a parts surplus."

“While the impact this may have on the team is unfortunate, these actions aim to support the long-term stability of our workforce and our program,” the statement read.

This is just the latest chapter in a turbulent saga for Spirit, which has been under a regulatory and financial microscope following a series of high-profile quality control issues. Most notably, the 737 MAX 9 door panel incident in January 2024 that exposed safety lapses across both Spirit and Boeing operations. The fuselage involved in the incident was manufactured at Spirit’s Wichita plant.

The timing of the furloughs is notable, with Boeing in the process of acquiring Spirit’s commercial operations through a $4.7 billion deal. That acquisition was partly motivated by Boeing’s desire to bring more control over manufacturing quality following repeated production missteps. Airbus, meanwhile, is scooping up Spirit facilities related to its own aircraft.

Spirit reported an 11% drop in first-quarter revenue compared to last year, driven largely by reduced output on Boeing programs. The company lost $613 million during that period, only a marginal improvement over last year’s $617 million loss. While 737 production was once expected to ramp up in early 2024, the FAA maintained its ruling that kept Boeing’s monthly 737 output at or below 38 jets.

Despite the bumps, Spirit maintains a massive backlog of $48 billion. This clarifies that Spirit’s issue doesn’t fall with demand, but with incorrect parts being built that clog up the shelves.

FMI: www.spiritaero.com