Boeing executive says supplier Spirit Aero has a substantial inventory of 737 fuselages

SEATTLE (Reuters) -Boeing's key supplier Spirit AeroSystems has a substantial inventory of 737 fuselages that are ready to ship, an executive with the planemaker told a Seattle aerospace conference on Tuesday.

The U.S. planemaker is working to grow production of its 737 MAX jet to at least 38 a month this year after drastically curbing output in 2024 following quality concerns after a mid-air panel blowout on a near-new model.

Ihssane Mounir, Boeing senior VP for global supply chain and fabrication, told the Pacific Northwest Aerospace Alliance (PNAA) supplier conference that the quality of the Spirit Aero-produced fuselage has significantly improved.

Boeing is aiming to improve quality by minimizing the transfer of work from one supplier to another within its vast supply chain, a shift that Mounir said is the leading cause of quality defects.

Boeing is in the process of buying financially-strapped Spirit Aero even as the planemaker tries to revive its battered supply chain after a weeks-long strike last year by its Northwest factory workers halted most jet output.

Wichita-based Spirit Aero has increased fuselage production from a rate of 21 a month to 31 a month, a source familiar with the matter told Reuters.

Spirit Aero spokesperson Joe Buccino said the company "remains committed to meeting our customer's production targets."

Boeing said last month it has $87.5 billion in inventory, ample enough to allow it to produce its strongest-selling 737 MAX at a rate of 38 a month.

(Reporting by Dan Catchpole in Seattle and Allison Lampert in Montreal; Editing by Chris Reese)