Boeing shares dropped 6.18% to $185.82 Monday after the FAA delayed certification of the 737 Max 10 over a software glitch. The Max 10 accounts for roughly 31% of Boeing's undelivered 737 orders, and the setback also threatens Max 7 deliveries to Southwest and United.
FAA halts Max 10 certification
Boeing shares fell $12.25 to $185.82 Monday afternoon after the Federal Aviation Administration said it would delay certifying the 737 Max 10, the largest and final variant of the Max family. FAA Administrator Bryan Bedford announced the delay at an event at Ronald Reagan Washington National Airport, saying the agency has not concluded whether a software issue constitutes a "safety of flight" concern and will withhold certification until it is satisfied. The Max 10 accounts for roughly 31% of Boeing's undelivered 737 orders as of end-June, according to CBS News.
The glitch sits in Flight Management Computer software versions 14 and 14.1. When a pilot alters the programmed flight path after a missed approach, the vertical navigation system can disengage and revert to a simpler pitch mode, raising crew workload close to the airport, CBS News reported. According to CBS News, an unnamed airline source put it bluntly: "How busy do you want your crew to be?"
Boeing had determined in February 2025 that the issue was not a safety concern, but new information from operators this year prompted a formal safety review board. The company notified all 737 operators in late August and said a permanent software fix is not expected until 2028, though it is working to speed that up. A Boeing spokesperson told Reuters the company reinforced existing pilot procedures, noting autopilot keeps functioning even if the navigation system disengages and all pilots are trained to land without it.
Alaska Airlines faces delivery hit
Alaska Air Group has 105 Max 10s on order plus options for 35 more, its largest single order ever, and had been counting on first delivery in spring 2027 with passenger service between April and mid-May, Reuters reported. Alaska Air COO Jason Berry told Reuters on September 24 he expected certification by end-September, an expectation now off the table. Alaska Air shares fell 1.73% to $40.23 Monday afternoon as the delivery timeline comes into question.
Wider fleet fallout
The delay also threatens deliveries of the recently certified 737 Max 7, whose order book sits almost entirely with Southwest Airlines. Southwest and United Airlines have both told Boeing they will not accept new Max deliveries carrying software versions 14 or 14.1 and requested an earlier software load instead, according to AirwaysMag. Alaska Airlines and American Airlines have confirmed none of their in-service Max fleets carry the affected software.
Financial pressure mounts
The timing is sensitive for Boeing's recovery: the company has posted per-share losses in each of its past two reported quarters. Monday's intraday volume on Boeing reached 11.7 million shares, nearly double its three-month average of roughly 5.95 million, per Investing.com data. The stock has retreated from its 52-week high of $254.35 and now sits within about 5% of its 52-week low of $176.77.
The FAA said it will convene a Corrective Action Review Board and will act immediately if it identifies a safety concern, a spokesperson told Reuters. No timeline has been given for when a Max 10 certification decision could be revisited.
Source: Investing.com
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