Boeing Stock Rises as FAA Restores Self-Certification Authority for 737 MAX and 787

Shares of Boeing Co. (NYSE: BA) gained 1.0% in pre-market trading after the U.S. Federal Aviation Administration (FAA) formally restored the company's authority to self-issue airworthiness certificates for all new 737 MAX and 787 Dreamliner aircraft. The decision marks a significant milestone, ending years of heightened federal oversight imposed after a series of high-profile manufacturing and safety failures.

A Key Regulatory Milestone

The FAA's move follows a trial period that began in September 2025, during which Boeing and the agency alternated the issuance of certificates on a weekly basis. According to the regulator, it found comparable production quality over the subsequent eight months regardless of which party issued the certifications, providing the confidence needed to return full responsibility to the aerospace manufacturer.

"Safety drives everything we do, and this step forward is only possible because we are confident it can be done safely," said FAA Administrator Bryan Bedford in a statement. The restoration of this authority is a critical step for Boeing, as it should help streamline its delivery process and reduce operational friction.

Positive Outlook from Farnborough

Adding to the positive sentiment, senior FAA officials signaled further progress in certifying other key Boeing aircraft. Speaking to reporters at the Farnborough Air Show, FAA Deputy Administrator Chris Rocheleau stated that certification for the 737 MAX 7 is "literally around the corner," with the larger MAX 10 variant expected to follow.

Ad

Rocheleau also indicated that the agency anticipates certifying Boeing’s much-delayed 777X wide-body jet either late this year or in early 2027, contingent on the company providing the necessary documentation. This pipeline of approvals is crucial for Boeing to meet customer demand and compete with rival Airbus.

Market Impact and Financial Context

For investors, the FAA's decisions provide tangible evidence of a turnaround at the company, which has struggled with production issues and financial losses for years. The news comes as Boeing reported delivering 314 commercial airplanes in the first half of 2026, its strongest performance for that period since 2018.

The company, which posted annual losses from 2018 to 2024, has guided for positive cash flow in the second half of this year. Management sees the ramp-up in production and deliveries, supported by these new certifications, as central to achieving its long-term target of $10 billion in annual free cash flow. Boeing is scheduled to release its second-quarter 2026 earnings on July 28.