By Katherine Hamilton

Spirit AeroSystems has developed a plan to improve liquidity, but still has doubts about whether it can keep operating ahead of its acquisition by Boeing.

The aircraft company said its plan depends on several factors, according to a Securities and Exchange Commission filing on Friday. Those include repaying customer advances on time, achieving the Boeing 737 deliveries it has forecasted and completing its deal with Boeing.

Spirit management is also evaluating alternatives including additional customer advances and restructuring operations to increase efficiency and cut costs, the company said.

"However, there can be no assurance that these plans or strategies will sufficiently improve our liquidity needs or that we will otherwise realize the anticipated benefits," the company said. "Accordingly, substantial doubt about the Company's ability to continue as a going concern exists."

While customer advances in 2024 provided operational liquidity, Spirit said it couldn't assure that it could get additional advances, repay the ones they have already received by their due dates, renegotiate those due dates or obtain the liquidity needed.

The airline needs additional funding to sustain operations as it expects to continue generating an operating loss for the foreseeable future, it said.

Spirit's fourth-quarter revenue fell 9% to $1.65 billion and it swung to a loss of $5.4 million, compared with a profit of $66,000 the prior year.

The company first issued its going concern warning in November. Spirit and Boeing entered a merger agreement in June, which is set to close later this year.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 28, 2025 17:16 ET (22:16 GMT)

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