TOULOUSE, FRANCE / WICHITA, KANSAS – July 18, 2025 – European aerospace giant Airbus has announced a significant financial boost for its key supplier, Spirit AeroSystems, agreeing to provide an additional $94 million in support. This latest injection brings Airbus’s total support package to Spirit AeroSystems to $152 million, alongside a new $107 million interest-free credit line, underscoring the critical need to stabilize the aerospace supply chain and ensure aircraft production targets are met.
The move comes as Spirit AeroSystems navigates substantial financial challenges, including a reported $5.39 billion debt burden and negative EBITDA of $1.44 billion in the last twelve months. The company, a crucial manufacturer of aerostructures for both Airbus and Boeing, has faced ongoing production issues and quality concerns that have impacted delivery schedules across the industry.
Why the Investment Matters for Airbus
- Supply Chain Stability: Spirit AeroSystems plays an indispensable role in Airbus’s production lines, manufacturing vital components for aircraft like the A350 and A220. This financial support is a direct effort to mitigate supply chain disruptions and secure timely deliveries of these key programs.
- A350 & A220 Ramp-Up: Airbus is actively working to ramp up production of its A350 and A220 aircraft. Issues at Spirit AeroSystems have been a bottleneck, and this investment aims to empower Spirit to meet the increased demand and production rates. Airbus anticipates the A350F (freighter variant) to enter service in H2 2027 due to these challenges.
- Strategic Acquisition Context: This financial support is intertwined with Airbus’s broader strategy to acquire specific Spirit AeroSystems assets related to Airbus programs. As part of a larger divestiture agreement, Airbus will take ownership of sites in Kinston (North Carolina, U.S.), Saint-Nazaire (France), Casablanca (Morocco), and aspects of production in Prestwick (Scotland) and Wichita (Kansas, U.S.). This vertical integration aims to give Airbus greater control over critical manufacturing processes and reduce reliance on external suppliers for key components. The closing of this transaction, along with Boeing’s acquisition of the majority of Spirit, is expected in the third quarter of 2025, pending regulatory approvals.
Impact on Spirit AeroSystems
The additional funding is a lifeline for Spirit AeroSystems as it works to improve its operational efficiency and financial health. The company has been burning through cash rapidly, and this support from a major customer is vital for its continued operations and restructuring efforts. Spirit has also been exploring other strategies, including additional customer advances and internal operational restructuring, to improve its liquidity.
Broader Industry Implications:
The aerospace industry has been grappling with persistent supply chain issues and quality control concerns, particularly following the pandemic’s impact on manufacturing and labor. The ongoing struggles at Spirit AeroSystems highlight the interconnectedness of the industry and the ripple effect that challenges at a key supplier can have on major aircraft manufacturers like Airbus and Boeing. Both aerospace giants are actively working to de-risk their supply chains, with Boeing moving to acquire the majority of Spirit AeroSystems in an all-stock transaction valued at approximately $4.7 billion.
This latest financial commitment from Airbus underscores the shared interest in ensuring the health and stability of critical aerospace suppliers, paving the way for sustained production and delivery targets across the global aviation sector.
