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Why is Spirit Aerosystems Holdings Inc (SPR) Stock down?
Spirit Aerosystems Holdings Inc (SPR) stock dropped by 11.13% due to a troubling incident involving a Boeing 737 MAX 9 aircraft. This incident had far-reaching implications for Spirit Aerosystems - Boeing's supplier, impacting their stock prices and investor sentiment.
- Aircraft Door Malfunction: The catalyst for this stock decline was a distressing event in which an exit door of a Boeing 737 aircraft malfunctioned during a commercial flight. It is worth noting that Spirit Aerosystems was a vendor associated with the production of this faulty door. The repercussions of this incident sent shockwaves through the market, causing concern among investors.
- Alaska Airlines Emergency Landing: The incident occurred on an Alaska Airlines flight that was en route from Portland, Oregon, to Ontario, California, on a Friday. During the flight, a critical situation unfolded, leading to an emergency landing. Part of the aircraft's fuselage detached itself, resulting in a significant breach in the plane's side. At present, the root cause of this alarming event remains undetermined.
- FAA Grounds Boeing 737 MAX 9: In response to the incident, the Federal Aviation Administration (FAA) took decisive action by issuing an order on Saturday. The directive mandated the immediate grounding of all Boeing 737 MAX 9 aircraft for thorough inspection. This directive extended to a total of 171 planes worldwide, prompting airlines in Turkey and Panama to also ground their flights as a precautionary measure.
Shares of Spirit Aerosystems Holdings (SPR) dropped by 6.34% from $24.62 to $23.06 in the trading on Wednesday, Novemeber 8, 2023. The reason why SPR down is due to the company's announcementof a proposed public offering of Class A common stock and a private offering of exchangeable senior notes. In the public offering, Spirit AeroSystems Holdings plans to offer $200 million of Class A common stock, with a potential additional $30 million, subject to market conditions. Concurrently, Spirit AeroSystems, Inc., a subsidiary, is offering $200 million in exchangeable senior notes maturing in 2028, with a possible additional $30 million. Both offerings are independent of each other, and the terms are subject to market conditions. Morgan Stanley, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BofA Securities, and Citigroup are acting as underwriters.
Boeing faces a new 737 MAX setback due to supplier Spirit AeroSystems (SPR), causing a 12.67% stock drop; improperly drilled holes by Spirit delay production ramp-up. Issue pertains to cabin pressure maintenance, not safety, but could impact deliveries and costs for Boeing. Spirit acknowledges the concern and process changes, aiming to limit delivery impact. Boeing reevaluates 400-450 jet delivery goal for the year.
https://www.fool.com/investing/2023/08/24/why-spirit-aerosystems-stock-is-down-big-today/
Shares of Spirit AeroSystems (SPR) plummeted 27.29% to $22.86 on Wednesday after the aerospace manufacturer disclosed $105 million in losses on Boeing (BA.N) and Airbus (AIR.PA) aircraft production and forecast a bleak cash flow picture for the rest of the year.
Spirit AeroSystems (SPR) stock fell down 9.43% due to the vote of strike, prompting Spirit to halt its production lines. The stoppage at a Spirit factory in Wichita, Kansas, began with the first shift on Thursday. The strike is set to begin just after midnight on Saturday. Spirit will suspend factory production prior to the expiration of the contract.
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