The Federal Aviation Administration certified Boeing Co.’s (NYSE:BA) 737 Max 7 on Monday, clearing the smallest jet in the bestselling family for passenger service after nearly a decade of delays and safety reviews.
FAA Approval Opens Path To Deliveries
The approval lets Boeing begin deliveries, but passengers may wait months to fly aboard the jet. Southwest Airlines Co. (NYSE:LUV), its launch customer and largest buyer, has not scheduled the Max 7 through March 2027. The carrier previously said it would need about six months after certification to update manuals, training, operating specifications and interiors.
The FAA said the decision "reflects years of sustained work to resolve complex technical issues and complete a thorough review of the airplane’s design and supporting safety analyses." Regulators required flight-control software and cockpit-alert updates, plus a redesigned engine anti-ice system to prevent overheating.
"This important certification validates the rigor of our airplane’s design and recognizes the determination and resilience of our 737 MAX development team," Boeing Commercial Airplanes CEO Stephanie Pope said.
The Max 7 began testing in 2018 and seats 135 to 160 passengers. Boeing says it offers about 10% more range than other Max variants, giving Southwest a smaller jet for routes that may not support the larger Max 8.
Safety Crises Reshaped Boeing’s Regulatory Oversight
The milestone follows years of crisis after two Max 8 crashes in Indonesia and Ethiopia killed 346 people in 2018 and 2019. The FAA tightened oversight again after a door plug blew off an Alaska Air Group Inc. (NYSE:ALK) Max 9 in January 2024, intensifying scrutiny of Boeing’s manufacturing controls.
The regulator recently allowed Boeing to resume issuing airworthiness certificates for new Max and 787 aircraft under FAA oversight. It also permitted the planemaker to raise Max production to 47 jets monthly.
Certification Could Unlock Cash And Momentum
Certification could unlock cash from about 30 completed Max 7s already in inventory because manufacturers receive most of an aircraft’s price at delivery. Boeing has relied on higher Max and 787 deliveries to rebuild cash flow.
Attention now shifts to the larger Max 10 and long-delayed 777X. FAA Deputy Administrator Chris Rocheleau said in July that Max 10 approval was "right behind" the Max 7.
Price Action: Boeing shares closed 8.03% higher at $233.49 on Monday and was up 0.22% at $234.00 in pre-market trading on Tuesday.
According to Benzinga Edge Rankings, Boeing stock currently has an average Momentum score and a poor Value score.
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