Spirit AeroSystems price renegotiations with Airbus to conclude soon

Spirit AeroSystems expects long-term financial renegotiations with Airbus surrounding the losses in its A350 and A220 program to conclude by the end of the month. ""We are working to not only improve these programs in our day-to-day operations, but also are engaged in discussions with Airbus to address the long-term financials,"" said Spirit AeroSystems CEO and president Pat Shanahan. ""The negotiations with Airbus continue and have been productive. We hope to conclude by February, but we need to ensure all items are addressed. We are converging on operational and financial solutions."" Spirit AeroSystems reported a net loss of $633 million for 2023, a 16% increase from 2022's $546 million net loss. The company's senior vice president and CFO Mark Suchinski said: ""The current quarter forward losses relate primarily to A350 and A220 programs and were driven by higher estimates of supply chain, labour and other costs."" The company is also looking at transferring work to the Airbus supply chain to allow the company to ""get to the right pricing level"" in a cost saving measure. Shanahan added: ""This is coming out of the old Bombardier supply chain and going to Airbus suppliers. We've jointly evaluated those costs, and Airbus has a significant history with those suppliers."" He added that he felt ""confident in that cost basis"" with the company having a ""fairly good understanding of the cost and productivity curves for assembly, particularly in Belfast."" Spirit Aerospace acquired select assets of Bombardier aerostructures and aftermarket services businesses in Belfast, Northern Ireland in 2020. The company recorded a $30 million net incremental forward loss for its anticipated performance obligations beyond 2025. Suchinski added: ""The unfavourable cumulative catch-up adjustments relate primarily to the 737 program, reflecting higher costs required to recover and stabilise the production system."" Shanahan said it has made ""significant progress"" in stabilising the 737 production line in the fourth quarter of 2023.