Spirit AeroSystems Stock Soars on Report Boeing in Talks To Buy the Supplier

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published March 01, 2024
Spirit Aerosystems

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Key Takeaways

  • Shares of Spirit AeroSystems took off Friday afternoon following a report the supplier of fuselage parts for Boeing is in talks to be purchased by the plane maker.
  • Spirit AeroSystems was spun off from Boeing in 2005.
  • Both companies have been under scrutiny by federal regulators following the January mid-air blowout of a door plug on a Boeing 737 Max 9 passenger jet.

Spirit AeroSystems (SPR) shares surged 14% Friday afternoon following a Wall Street Journal report that its former owner, Boeing (BA), is in talks to buy it back.

Spirit AeroSystems supplies fuselages to the plane maker, and has been at the center of the controversy over a January mid-air mishap in which a door plug on a Boeing 737 Max 9 blew out. The Federal Aviation Administration (FAA) temporarily grounded certain Max 9 aircraft for inspections following the incident.

Citing people familiar with the matter, the Journal said Spirit AeroSystems has hired bankers to explore strategic options, and held preliminary discussions with Boeing. It also is reportedly considering selling its operations in Ireland that manufactures parts for Boeing rival Airbus. 

Spirit AeroSystems was created in 2005 when Boeing sold off some of its factories, and the plane maker accounts for almost two-thirds of its sales.

Both firms have been under intense scrutiny from U.S. regulators following the door plug incident on a Jan. 5 Alaska Airlines (ALK) flight from Portland, Ore. Shares of Spirit AeroSystems sank 9% the next trading day, but with Friday’s gains, they've recovered to surpass where they were before the incident.

SPR

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  1. The Wall Street Journal. "Boeing in Talks to Buy Troubled Supplier Spirit AeroSystems."

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