Key Takeaways:
Boeing Co. now expects its 737 Max 7 and Max 10 jets to be certified by the U.S. Federal Aviation Administration in 2026, pushing initial deliveries to customers into 2027 and extending the timeline for the much-anticipated aircraft.
"We haven’t seen anything today that would indicate that Boeing would not be able to meet certification before the end of the year,” FAA Administrator Bryan Bedford told Bloomberg, though he cautioned that ongoing flight testing could still uncover new issues.
The updated timeline was confirmed in the company's latest earnings report, where it narrowed its first-quarter adjusted loss to 20 cents a share on revenue of $22.22 billion. The manufacturer is currently producing its 737 Max planes at a rate of 42 per month and delivered 143 commercial aircraft in the first quarter, a 10 percent increase from a year earlier.
The extended certification schedule for the smallest and largest versions of its best-selling 737 Max family puts further pressure on Boeing as it works to recover from years of production and safety crises. Any further delays could allow rival Airbus SE to capture a greater share of new orders from airlines eager to update their fleets.
"Though we've faced some challenges, I'm proud of how our team has pulled together and worked through them to keep us on plan for the year," CEO Kelly Ortberg said in a note to employees. Ortberg took over in August 2024 with a mandate to steer the aerospace giant past its recent quality control and safety problems.
The certification of the new 737 variants is a critical step for Boeing. The company is still working to resolve a safety issue with the engine anti-ice system on the Max jets, a factor that has contributed to the certification delays. While the company's commercial aircraft unit saw revenue climb 13 percent to $9.2 billion, it still posted an operational loss.
The planemaker's struggles are not limited to the 737 Max program. Boeing is also grappling with delays on its 777X widebody jet due to engine issues and is facing scrutiny over its Starliner spacecraft after a critical NASA report.
This article is for informational purposes only and does not constitute investment advice.
