How 737 MAX Order At Boeing (BA) Has Changed Its Investment Story

Boeing's 737 MAX 7 received FAA certification on August 3 after extensive testing. Southwest Airlines, the launch customer, expects deliveries by late 2026 and passenger service to begin in early 2027. Boeing has already built 27 MAX 7s for Southwest, which are being prepared for delivery. The certification was delayed by issues with the engine anti-ice system, which also affected the MAX 10. The MAX 7 is designed to carry 135-160 passengers with a range of up to 3,800 nautical miles.

Boeing (BA) and the Society of Professional Engineering Employees in Aerospace reached a tentative four-year agreement for 17,000 engineers, offering a 10% wage increase, followed by 4% and 6% annual raises. The deal aims to avoid a strike before the current contract expires on October 6. The union recommends approval, but members must still vote. The agreement may increase labor costs but could stabilize operations critical to Boeing's aircraft programs.

The US Air Force awarded a $149M contract to four small steel companies (Superior Forge, Ellwood, Faxon, Grand Valley) to manufacture casings for the GBU-57 bomb, ending Boeing's 18-year monopoly. The move aims to diversify production and address supply shortages, with work extending through 2033. Boeing's past delays and the recent use of the bomb in operations prompted this change.

Boeing and Turkish Airlines finalized a deal for up to 150 737 MAX aircraft, including 100 firm orders. The agreement, signed in New York, follows a year of negotiations focused on engine terms. This is Boeing's largest single-aisle order with Turkish Airlines, who plans to use the aircraft for network expansion and fleet modernization. The deal is significant for Boeing as it seeks to regain airline confidence in the 737 MAX.

The FAA granted Boeing a waiver to produce up to 35 777 freighters from 2028 to 2031, exempting them from new emissions standards. Boeing argued the exemption was necessary to avoid disrupting the air cargo industry and protect U.S. jobs and exports. The FAA agreed, citing minimal environmental impact and public interest benefits.

Boeing's 737 MAX 10 is nearing FAA certification, with Alaska Airlines as the launch customer. The aircraft offers the highest seat count among 737s, optimized for domestic routes. Major airlines, including American, Delta, and United, have significant orders. Certification does not guarantee immediate deployment, as Alaska must validate cockpit systems. Airlines plan to use the extra space for premium seating, with American and Delta installing at least 24 first-class seats per plane.