Aerostructures manufacturer Spirit AeroSystems Holdings posted a quarterly loss on Tuesday, proving to be yet another aircraft manufacturer that has been hit by the slump in air travel caused by the COVID-19 pandemic. The company explained in a statement that this loss resulted directly from the reduction in aircraft part shipments to its top clients such as Boeing Co and Airbus SE.
Spirit’s total deliveries of ship sets, or complete sets of parts, decreased by a colossal 48.9% to 231 units in the fourth quarter. This plummet resulted in a 55.3% decrease in total revenue to $876.6 million. Total loss for the fourth quarter ending December 31st, 2020, was $295.9 million, or $2.85 per share. This is in stark contrast to the holding company’s 2019 results when it reached a profit of $67.7 million.
Industry analysts expect a gradual increase in the demand for air travel in 2021, with Spirit AeroSystems also standing to benefit financially from this upward trend as a result of increased aircraft deliveries. Much of this recovery is expected to come from increased demand for Boeing’s 737MAX jet, which accounted for almost 50% of Spirit’s sales in 2019.
