Boeing Stock Surges as FAA Signals Confidence in Jet Production
Boeing shares rose nearly 4% on Friday, extending gains of about 25% so far this year. The rally comes as federal regulators move to ease restrictions on the company’s jet production, a shift that could accelerate deliveries and strengthen investor confidence in the aerospace giant’s turnaround.
The Federal Aviation Administration confirmed it will allow Boeing to resume issuing some airworthiness certificates for its 737 Max and 787 Dreamliner aircraft starting Sept. 29. The move marks a major milestone in Boeing’s efforts to rebuild trust with regulators and customers following years of safety and quality concerns.
FAA Eases Oversight
The FAA had stripped Boeing of its ability to self-certify jets in 2019 after two fatal 737 Max crashes, and again in 2022 due to quality issues with the Dreamliner. Since then, every airworthiness certificate has required direct FAA approval, slowing production and deliveries.
Now, under the new arrangement, Boeing and the FAA will alternate weeks issuing certificates for certain jets. Regulators emphasized that they will continue maintaining strict oversight, but the decision reflects progress in Boeing’s production quality and safety culture. This development signals to the market that Boeing has regained credibility with regulators, a key step in restoring long-term growth momentum.
Potential Production Boost
In addition to easing certification restrictions, the FAA is also reviewing Boeing’s request to increase output of the 737 Max. The company is currently capped at 38 planes per month, a limit imposed after a midair panel blowout on an Alaska Airlines flight in early 2024.
Reports suggest the cap could rise to 42 planes a month if safety inspectors are satisfied with Boeing’s processes. A production increase would represent meaningful progress in meeting surging airline demand, particularly as carriers worldwide seek to modernize fleets with more fuel-efficient aircraft.
Commercial Momentum Builds
Boeing’s improved regulatory standing comes on the heels of major commercial wins. The company recently announced deals with Uzbekistan Airways for up to 22 Dreamliners and with Turkish Airlines for as many as 75 Dreamliners. These agreements show continued global demand for Boeing’s wide-body jets, even after years of turbulence.
The timing is especially critical as Boeing works to stabilize its balance sheet after last year’s production caps and a crippling labor strike weighed on finances. Securing new orders not only provides revenue visibility but also demonstrates renewed customer confidence in Boeing’s product line.
Looking Ahead
For investors, the FAA’s decision represents a turning point in Boeing’s recovery story. Restored authority to issue certifications should reduce delivery bottlenecks, while the prospect of higher production rates could strengthen cash flow. However, the company must still prove it can maintain consistent quality and avoid setbacks that might invite tighter oversight once again.
With regulatory confidence improving, commercial orders stacking up, and output likely to rise, Boeing is positioning itself to regain altitude. The next test will be whether the planemaker can sustain this momentum and translate operational progress into durable profitability.
