Boeing wins $20 billion contract for US Navy's F/A-XX fighter

Boeing (BA) won two major U.S. fighter contracts: the F-47 for the Air Force and the F/A-XX for the Navy, each with a $20 billion development phase. The company is now the sole provider of sixth-generation fighters, which could lead to significant future revenue. Boeing's defense unit returned to profitability in 2024, with analysts expecting sustainable profits in 2027.

The U.S. Navy selected Boeing for a $20B contract to build the F/A-XX, a sixth-generation fighter jet. The program faced delays but was revived by Congress. Boeing will develop a stealth aircraft to replace the F/A-18E/F Super Hornets, with advanced features like sensor fusion and drone integration. The contract is part of broader U.S. military modernization efforts amid competition with China and Russia. Boeing is also expanding its facilities for related work.

Boeing secured two U.S. military contract modifications worth $47.7M. One is a $33.9M Army modification for CH-47F Chinook helicopters, including South Korea-specific requirements. The other is a $13.8M DLA modification for KC-135 fan duct spares. Work is set to continue until 2029 and 2034, respectively.

United Airlines' Boeing 787-10 aircraft now has an increased Maximum Takeoff Weight (iMTOW), adding 14,000 lb and extending range by 430 nautical miles or increasing payload by 5 metric tonnes. This upgrade, certified by the FAA, may allow United to use the 787-10 on longer routes previously better suited to the 787-9 or Airbus A350, potentially altering its fleet deployment strategy.

The FAA reportedly found a Boeing 737 Max software issue poses no safety risk, aiding the 737 Max 10's certification. Boeing disclosed the issue last month, affecting landing procedures. The FAA concluded pilots retain control and will receive clear indications if the issue occurs. Boeing shares rose 0.67% to $193.56 on October 2.

The FAA delayed Boeing 737 MAX 10 certification due to a software issue affecting vertical navigation. Boeing flagged the glitch, which may impact landing procedures. The FAA is assessing safety implications, while Boeing awaits further guidance. According to the FAA, safety dictates the certification timeline.