Boeing Stock Jumps as FAA Certifies 737 MAX-7 After Years of Regulatory Review

Boeing (NYSE: BA) shares surged more than 5% on Monday after the U.S. Federal Aviation Administration (FAA) officially certified the long-delayed 737 MAX-7, clearing a major regulatory hurdle that paves the way for customer deliveries and expanded production.

The FAA granted the aircraft an amended type certificate and updated Boeing’s Production Limitation Record following years of rigorous technical evaluations and safety reviews. The approval ends a certification process that lasted far longer than Boeing originally expected, with the company previously targeting approval before the end of 2022.

The certification follows Boeing’s completion of key design improvements, including a redesigned engine anti-ice system, one of the final requirements set by regulators. FAA Deputy Administrator Chris Rocheleau recently indicated that certification of the larger 737 MAX-10 could follow soon.

According to the FAA, the 737 MAX-7 incorporates multiple safety enhancements required under the Aircraft Certification, Safety, and Accountability Act, as well as recommendations from the National Transportation Safety Board (NTSB). These upgrades include revised flight-control software, an improved flightcrew alerting system, and the redesigned engine anti-ice system designed to prevent engine inlet overheating and strengthen overall aircraft safety.

Boeing said it is now preparing to deliver the first 737 MAX-7 to launch customer Southwest Airlines after completing the aircraft’s final configuration updates. The revised production certificate also authorizes Boeing to manufacture the new model.

Despite the certification, the FAA emphasized that inspectors will continue monitoring Boeing’s manufacturing facilities, Safety Management System, and production processes as output increases.

Mike Sinnett, Boeing’s Senior Vice President of Product Strategy, Product Development and Development Programs, said the lengthy certification process has given the company a stronger understanding of evolving regulatory requirements, helping improve future aircraft development with greater emphasis on safety, quality, and human factors.

According to aviation analytics firm Cirium, Boeing has already built around 30 MAX-7 aircraft and nine MAX-10 jets awaiting certification and delivery. The MAX-10 alone accounts for more than 28% of Boeing’s remaining 737 MAX order backlog, making its expected approval another significant milestone for the aircraft manufacturer.