Jim Cramer Says Boeing's Cursed Twice
Boeing told Spirit AeroSystems, which is its biggest supplier of fuselage and parts for its still-grounded 737 MAX aircraft, to slash output for the third time this year, another sign the airplane maker continues to struggle with slumping demand for new planes amid the coronavirus pandemic.
In a regulatory filing, Spirit AeroSystems said it had received notice from Chicago-based Boeing that it now wants fuselages for just 37 jets through the remainder of 2020 (35 shipsets already have been delivered to Boeing) down from the 125 Boeing said it wanted in May. The plane maker had initially told Spirit to deliver 216 this year.
Boeing, which restarted MAX production in May after a five-month pause, directed Spirit to halt work in early June before updating its expected demand for fuselages in the letter last week. Boeing communicated its updated plans in a letter June 19, Spirit said.
It also comes as carriers continue to grapple with the Covid-19 pandemic and dramatically reduced demand for air travel, and in turn new planes, an issue that has been dragging Boeing down since the pandemic took hold in North America in mid-March.
Jim Cramer says that Boeing is "cursed twice."
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