The Federal Aviation Administration has given Boeing the green light to resume issuing airworthiness certificates for its 737 Max family of jets, according to a regulatory filing published yesterday. The decision ends a months-long pause that had frozen deliveries and compounded the planemaker's production woes following a series of manufacturing defects and a mid-air incident earlier this year.
Under the restored authority, Boeing will be permitted to self-certify that newly built 737 Max aircraft meet US safety standards, a privilege the FAA had revoked after discovering lapses in quality control at Boeing's Renton factory. The agency said it had verified that Boeing had implemented revised inspection protocols and enhanced training for its workforce.
The news buoyed investor sentiment in the aerospace sector. Boeing shares climbed 3.2% in after-hours trading in New York, and the Stoxx Europe Aerospace & Defense index rose 1.1% in early trading today. London-listed aerospace suppliers such as Senior plc and Melrose Industries saw modest gains, reflecting optimism that faster deliveries will stabilise supply chains.
For UK airlines, the development is critical. Budget carriers including Ryanair and Jet2 have large outstanding orders for the 737 Max 8 and 8200 variants, with deliveries previously delayed by the certification freeze. Analysts at RBC Capital Markets noted that the resumption could help ease capacity constraints ahead of the summer 2027 scheduling season, though they cautioned that production ramp-up would take time.
The broader FTSE 100 was largely flat this morning at 8,245 points, with travel and leisure stocks edging up 0.3%. The pound traded at $1.31 against the US dollar, supported by expectations that smoother aircraft deliveries could reduce cost pressures for airlines.
Industry observers warn that Boeing still faces significant hurdles, including ongoing regulatory oversight and the need to rebuild trust with airlines and passengers. However, the FAA's decision is seen as a vote of confidence in Boeing's corrective actions and a step towards normalising operations.