:max_bytes(150000):strip_icc()/GettyImages-21821159691-a4e5650777de466e860a5d771a349f8e.jpg "Boeing Shares Are Surging. Here’s Why")
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KEY TAKEAWAYS
- Federal regulators are easing restrictions on some of Boeing’s jets, the FAA confirmed Friday, allowing the plane maker to produce and deliver its aircraft faster.
- Boeing will be allowed to issue some airworthiness certificates on some of its 737 Max jets and the 787, also known as the Dreamliner, the FAA said.
Federal regulators are easing restrictions on some Boeing jets, including 737s and 787s, the FAA confirmed Friday, potentially allowing the plane maker to produce and deliver them faster.
Boeing will be allowed to do the final safety check on some of its 737 Max and 787, or Dreamliner, jets, the FAA said. Regulators stopped allowing Boeing to issue its own airworthiness certificates, which indicate a plane is safe to fly, for 737 Max airplanes in 2019 following two fatal crashes, and for Boeing 787 airplanes in 2022 “because of production quality issues,” the agency said.
Why This Matters
Boeing shares have soared this year, but the FAA’s safety inspection curbs and restrictions on output have limited its growth potential. Getting back some authority to do final safety checks should make deliveries faster, and it also signals the FAA’s increasing confidence in Boeing’s quality standards.
“The FAA will allow limited delegation to Boeing for issuing airworthiness certificates for some 737 MAX and 787 airplanes starting on Sept. 29, 2025,” the regulator said.
“This decision follows a thorough review of Boeing’s ongoing production quality and will allow our inspectors to focus additional surveillance in the production process,” the FAA added. “The FAA will continue to maintain direct and rigorous oversight of Boeing’s production processes. Boeing and the FAA will issue airworthiness certificates on alternating weeks.”
Boeing (BA) shares were up nearly 4% in afternoon trading Friday, and have gained about 25% this year.
FAA Said Will Review if Boeing Can Produce More Planes
The Wall Street Journal, which reported earlier on the plan to ease restrictions, said the FAA is also expected to allow Boeing to increase its 737 Max production cap to 42 planes a month from 38 today. The FAA didn’t confirm that number, but told Investopedia that “if Boeing requests a production rate increase, onsite FAA safety inspectors will conduct extensive planning and reviews with Boeing to determine if they can safely produce more airplanes.”
The cap was put in place by regulators after a mid-air blowout of a door panel on an Alaska Airlines (ALK) 737 Max flight in January 2024.
The FAA’s easing of curbs on Boeing will come as welcome relief to the plane maker, which struggled last year following the Alaska Airlines incident with both the FAA’s production cap and a crippling strike that hit its finances. This year has been better, with Boeing saying this week it has inked deals to sell up to 22 787 Dreamliners to Uzbekistan Airways and up to 75 Dreamliners to Turkish Airlines.
