Boeing Soars 7% As FAA Certifies 737 MAX
Boeing shares rose 7% after the FAA certified the 737 MAX-7 model following a rigorous 10-year review process. The certification comes after significant safety concerns and fleet-wide groundings related to previous MAX variants.
Why it matters
The certification is a major milestone for Boeing's recovery efforts and investor confidence following years of safety-related crises and regulatory scrutiny.
Topline Boeing’s stock surged over 7% on Monday as the Federal Aviation Administration certified the company’s 737 MAX-7 model, according to a statement , greenlighting the airplane in an extensive, 10-year review partially lengthened by fatal crashes involving the larger MAX 8 variant and stricter safety standards from the FAA.
The first Boeing 737 MAX 7 aircraft sits on the tarmac outside of the Boeing factory on February 5, 2018 in Renton, Washington. Photo by Stephen Brashear/Getty Images Key Facts Boeing shares surged 7.4% to about $232 at 3 p.m. EDT.
The FAA’s review included evaluation of the MAX-7’s flight controls, flightcrew alerting and system safety assessments.
Boeing was required to make updates to the MAX-7’s flight-control software, flightcrew alerting system and its engine anti-ice system—which had to be redesigned after Boeing realized extended use of it in dry conditions could overheat part of the engine.
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