Airframe OEMs

American Airlines, United Airlines and Southwest Airlines are cutting their least-profitable routes as jet fuel prices climb to $4.71 per gallon, more than double the cost a year ago and near a 20-year high. Speaking at Morgan Stanley's annual Laguna Conference on Sept. 16, American CFO Devon May said the fuel spike has added $1 billion to the carrier's projected fourth-quarter expenses, prompting it to cut some December flights and plan for less growth next year. Southwest CFO Tom Doxey said the airline halved its planned 2-3% flight capacity growth "because fuel has been higher," while United CFO Mike Leskinen said United will fly fewer flights in December and could cut further next year, noting that 35% of its fourth-quarter tickets were already booked but that higher fuel costs get passed through to consumers with a lag. United and American declined to share the number of flights they cut, and a Southwest spokesperson told Fortune its schedule adjustments were "very minimal" and do not affect large-scale exits of routes or airports. United and American spent about $8.2 billion and $7.8 billion respectively on fuel in the first six months of this year, both up almost 49% from a year earlier, while Southwest spent nearly $3.6 billion, up about 39%; fares were 23.4% higher in August than a year earlier, compared to a 3.4% increase in overall consumer prices. The fuel shock has also hit Europe, where Ryanair cut its full-year passenger forecast this month from 216 million to 214 million.

Boeing CEO Kelly Ortberg tempered expectations for a large China aircraft order, clarifying that the company did not receive a roughly 200-plane order earlier this year and that Chinese officials instead indicated plans to move forward with purchases that he expects to emerge incrementally and be announced by individual airlines. Speaking at Morgan Stanley's 14th Annual Laguna Conference, Ortberg said Boeing has reached a 737 production rate of 47 aircraft per month but has yet to stabilize at that level, with wing production in Renton remaining the primary constraint even as the broader supply chain, including engines, is in good shape. Boeing expects 737 MAX 10 certification very soon, with flight testing complete and only documentation and regulatory review remaining; the MAX 10 represents roughly 30% of Boeing's 737 backlog. The 777X faces another hurdle, as Boeing awaits completion of GE Aerospace's engine mid-seal certification plan before it can begin ETOPS testing, with some testing possibly spilling into next year, though the company continues to target 2027 deliveries. Engine deliveries are also slowing Boeing's effort to raise 787 production from eight to 10 aircraft per month, with the required engine delivery performance now expected closer to year-end, and a potential SPEEA strike could effectively halt the 777X certification program and disrupt 737 production before the current contract expires Oct. 6. CFO Jay Malave reaffirmed Boeing's 2026 free cash flow forecast of $1 billion to $3 billion, with about $2 billion as the framework, but said slower-than-expected 737 and 787 production ramps through year-end make results above the midpoint less likely than previously expected.

Boeing has uncovered hundreds of millions of dollars in additional liabilities at Spirit AeroSystems beyond what it initially recognized after completing its $8.4 billion acquisition of the fuselage supplier in December 2025, The Wall Street Journal reported on September 3. Spirit's assumed liabilities now exceed identifiable assets by roughly $1.9 billion, including $1.52 billion tied to off-market customer contracts that Boeing must honor at a real economic loss. Because of acquisition accounting rules, those losses do not appear on Boeing's income statement and instead sit in footnotes tied to the deal, while the purchase price allocation remains provisional for up to a year after closing. Boeing bought back Spirit's factories after having sold them in 2005 as part of an outsourcing strategy, reversing course following a string of safety failures, including two fatal 737 MAX crashes and the 2024 Alaska Airlines door-plug blowout on a plane whose fuselage Spirit built. Boeing's stock has fallen by more than half since peaking in 2019.

Generac shares surged 31% after the company and Amazon executed a long-term supply agreement for backup generators for Amazon's data centers, a deal worth up to $8 billion that includes initial deliveries totaling $2.4 billion in 2027 and 2028 and warrants allowing an Amazon subsidiary to buy Generac shares through 2033. CoreWeave kicked off a fresh round of fundraising that includes a $3 billion convertible bond issue and an at-the-market offering program allowing it to sell as many as 35 million shares from time to time, saying the program will provide financing flexibility and help migrate its credit profile toward investment grade. Lockheed Martin moved on news that the Pentagon and the company struck a framework agreement for a multi-year production contract for the Joint Advanced Tactical Missile, or JATM, which is still in development but close to entering production and would become the most advanced air-to-air missile in the US arsenal, a role long held by RTX's advanced medium range air-to-air missile since 1993; the new missile program is receiving a $2 billion boost in the Trump administration's proposed budget for the fiscal year starting October 1. Boeing faces hard months ahead as CEO Kelly Ortberg and the CFO laid out challenges that surprised investors, including additional testing for the 777X that will spill into next year and a more muted cash outlook.

A potential ban on Bombardier aircraft sales in the United States could hit the Canadian jet maker's largest market and disrupt an aerospace supply chain spanning thousands of U.S. companies, BofA analysts said. The issue follows President Donald Trump's statement that Bombardier should no longer sell aircraft in the U.S., where its jets are certified by the Federal Aviation Administration and most aerospace goods produced in Canada and Mexico are exempt from U.S. tariffs. The U.S. accounts for about 45% of the global business-jet market and is Bombardier's largest individual market, with the company delivering roughly 80 to 100 aircraft there annually out of total deliveries of around 155, while its 2026 guidance calls for more than 157 aircraft. A halt to U.S. sales could also affect American suppliers, as Bombardier's supply chain includes roughly 2,800 U.S. companies across 47 states and generates about $2.5 billion in annual U.S. purchases. GE Aerospace supplies engines for Bombardier's Global 7500 and 8000 aircraft, Honeywell powers the Challenger 300, 350 and 3500 family, and RTX's Collins Aerospace supplies avionics across the Global and Challenger ranges. Trade tensions could also affect U.S. defense contractors if Canada shifts future procurement toward European or Asian suppliers, with programs potentially exposed including Canada's planned purchase of 88 Lockheed Martin F-35A fighters, which carries an acquisition budget of about C$27.7 billion, of which only 16 are firmly ordered and Ottawa has considered Saab's Gripen as a possible partial alternative. Canada also has commitments involving Boeing's P-8A Poseidon and General Atomics' MQ-9B SkyGuardian drones, and while a complete cancellation of Canada's outstanding U.S. defense contracts is considered unrealistic, future purchases could gradually shift toward other suppliers if trade relations deteriorate.

At least five people died after Prime Air Flight 7598, a Boeing 767-300 freighter operated by cargo airline 21 Air on Amazon's behalf, overran a runway while landing at Miami International Airport on Sunday and struck several vehicles on the ground. Five other people were injured, three of them critically, and more than 60 rescue units and approximately 200 emergency personnel responded as crews were still handling an aircraft fuel leak late Sunday afternoon. An Amazon spokesperson confirmed that 21 Air, not Amazon itself, was flying the plane for the company, and both 21 Air and Boeing said they would support the government investigations. The National Transportation Safety Board sent an investigative team led by Chairwoman Jennifer Homendy and scheduled its first media briefing for Monday, and investigators have not yet established what caused the accident, making it premature to assign responsibility or estimate any financial consequences for Amazon, 21 Air, or Boeing. Officials halted flights after the crash, but airport operations resumed by Sunday evening, reducing the likelihood of an extended shutdown affecting Amazon shipments and other freight moving through the airport. According to Flightradar24, the aircraft was a 32-year-old Boeing 767-300 freighter that had operated as a passenger aircraft for several airlines between 1994 and 2015, and it was traveling at 112 knots, or 129 mph, when it left the usable runway.

Bombardier shares fell 6.4% after President Donald Trump threatened to ban the Canadian planemaker from selling aircraft in the United States unless it builds planes there. In a Truth Social post, Trump wrote "NO MORE SELLING BOMBARDIER IN THE UNITED STATES!" and criticized the Montreal-based company's products. Bombardier relies on the US for more than half of its revenue, and the threat follows similar White House pressure in January over the Global Express lineup. The move coincides with Ottawa's new counter-tariffs on US goods, escalating trade tensions. Analysts warn that a ban could disrupt Bombardier's US service networks and suppliers, hurting the broader aerospace sector.

Boeing has paid a $3.1 million Federal Aviation Administration safety fine tied to significant violations in aircraft certification and oversight, including interference with safety officials and presenting non-airworthy aircraft for certification. The FAA linked the penalty to hundreds of quality system violations and broader scrutiny following the 737 MAX 9 door plug blowout. Boeing did not publicly disclose the fine, raising fresh questions about its safety culture and transparency. The fine is part of a larger pattern of regulatory and reputational challenges that could pressure Boeing's margin recovery and competitiveness against rivals like Airbus and GE Aerospace.