FAA to review Boeing 737 MAX software issue on Friday

Boeing (BA) shares rose 4% after its largest white-collar union, SPEEA, approved a new four-year contract, averting a potential strike. The deal includes a 10% wage increase and annual raises, removing disruption risks for Boeing's production and certification work. The current contracts were set to expire October 6. A strike could have impacted Boeing's efforts to advance its 737 MAX 10 and 777X aircraft.

Boeing's engineers and technical workers approved a new four-year contract with immediate 10% raises, avoiding a strike. The Society of Professional Engineering Employees in Aerospace represents 17,000 workers. Boeing revised its offer in September after an initial rejection.

The FAA may convene a review panel to assess a software glitch in certain Boeing 737 Max jets, delaying the Max 10's certification. The issue, present in GE Aerospace's flight-management software, may not be an immediate safety risk, according to Boeing. BA shares rose 2%.

Boeing's largest white-collar union approved a new four-year contract offer, avoiding a potential strike. The deal includes a 10% wage increase, 4% annual raises, and a possible 2% performance-based hike. About 68% of the professional unit and 53% of the technical unit voted in favor. The ratification prevents delays in jetliner certification and production. The previous offer was rejected for linking raises to inflation. The last strike was in 2000, lasting 40 days.

The U.S. Department of Defense awarded Boeing a $20 billion contract for the F/A-XX, the Navy’s next-generation stealth fighter. The program could be worth hundreds of billions over its lifetime. Boeing beat Northrop Grumman, which saw its shares fall 3.5%. Boeing shares rose 2%. The F/A-XX is set to replace current fighters and enter service around 2035, with production capacity cited as a key factor in Boeing's win.

The FAA will review a Boeing 737 MAX software issue on Friday that may affect automated flight guidance during landings. Airline officials believe the issue does not pose a safety concern. The FAA delayed 737 MAX 10 certification pending analysis.