Boeing Wins FAA Certification for 737 Max 10 as Q3 Results Loom

The US Federal Aviation Administration certified Boeing’s 737-10, the largest 737 Max, yesterday, yet Boeing (NYSE: BA) shares closed the session down 0.5%. Boeing builds commercial jets, defence and space systems, and the approval completes its Max family.

Boeing closed at $190.47 yesterday, down $0.95 on the session, on volume of 7.3 million shares. That is 20.7% below the August high close of $240.19 on the 5th of August, and 3.3% above the September low of $184.39.

The FAA approved the amended type certificate, the regulator’s formal approval of the aircraft design. Boeing said this clears the way to begin deliveries “in the coming months”. The jet was launched at the 2017 Paris Air Show and first targeted for 2020, with delays following the 2018 and 2019 Max crashes and the January 2024 Alaska Airlines panel blowout. Stephanie Pope, president and CEO of Boeing Commercial Airplanes, said:

Completing the certification program clears the path for us to deliver a Boeing airplane that will set a new standard in commercial aviation.

Stephanie Pope, Boeing Commercial Airplanes

Boeing says more than 30 customers have ordered 1,555 of the jets, over 30% of unfilled 737 Max orders. Across the Max programme, customers have placed 7,350 orders, of which nearly 2,500 were delivered by the end of September. Deliveries, jets handed to airlines, trigger most of the cash.

Analysts remain constructive, with 18 Strong Buy, 7 Buy, 4 Hold and no Sell ratings, and a mean target price of $267.22. Chief executive Kelly Ortberg said on the 16th of September he expects to raise 737 output to 52 a month in 2027 from the FAA-authorised 47.

Boeing reports third-quarter results next Tuesday, before the US market opens at 1.30pm UK time. Analysts expect a loss of 17 cents a share, against a 76-cent loss in the second quarter, when the estimate was a 34-cent loss.