Performance recovery engine of Boeing Company (BA.US) roars! Three delayed aircraft models sprint for certification, cash flow and balance sheet welcome a key turning point.

American Airlines Group Inc. aerospace giant Boeing Company (BA.US) said that three orders for jet aircraft models with long certification schedules are nearing completion of the certification process. Years of operational and quality control errors have weakened the balance sheet of this global largest aircraft manufacturer and triggered stricter scrutiny from US federal regulators. The company is now gradually restoring production capacity. The Boeing Company 737 MAX 7 is the smallest model in its best-selling aircraft series, and is expected to be certified this year. Chris Payne, vice president of Boeing Company's 737 aircraft development, said that 95% of all certification delivery projects of this American aircraft manufacturer have been completed. Payne said at a briefing held in the Seattle area that all required test flight projects have been completed, and Boeing Company is currently in the final stages of obtaining certification for the engine anti-icing system. Payne said that the flight tests for the MAX 10 have been completed 98%, with only two test flights remaining. MAX 10 is the largest model in this series, capable of carrying 230 passengers, and is in fierce competition with Airbus' best-selling A321neo. The certifications for MAX 7 and MAX 10 have been delayed for several years. It is crucial for Boeing Company to recover cash generation capabilities and repair balance sheets after years of losses and promote the certification of these two models as well as the large-size 777X wide-body aircraft. Two fatal 737 MAX crashes in 2018 and 2019 prompted regulators to rigorously review the system of this model, resulting in a nearly two-year grounding. As part of the approval for the resumption of operations for the MAX 8 and MAX 9, the European aviation regulatory agency required Boeing Company to increase the system resilience of the MAX series aircraft in the event of a failure in any angle of attack sensor before the MAX 7 and MAX 10 were approved. This new system also needs to be retrofitted to aircraft that are already in operation. A major event that led to the government control over Boeing Company's 737 MAX production capacity occurred on January 5, 2024, with Alaska Air Group, Inc. Flight 1282: a nearly brand new 737 MAX 9 took off, and the midsection of the fuselage "cabin plug" fell off in the air, causing explosive decompression. Subsequent investigations found that the cabin plug was missing four crucial fastening bolts after being returned to the Boeing Company factory for rework, revealing systematic defects in manufacturing, documentation, and quality control. The FAA then prohibited Boeing Company from increasing 737 MAX production on January 24, 2024, effectively locking the monthly production limit at 38 aircraft. The previous limit of 38 aircraft/month has been lifted. The FAA approved Boeing Company to increase production to 42 aircraft/month in October 2025, ending the hard limit implemented in early 2024; in May 2026, they supported Boeing Company to further increase to 47 aircraft/month. Boeing Company plans to reach 52 aircraft/month by early 2027. However, this does not mean that regulatory oversight has fully returned to normal: the FAA still maintains enhanced on-site supervision, and Boeing Company must demonstrate stable production systems and coordinate with regulatory agencies each time production speed is increased. Therefore, for Boeing Company's production capacity, it is a "hard prohibition has been lifted, but the expansion of production capacity remains in a phased, heavily regulated release mode." Bill Kushnock, Boeing Company's deputy chief test pilot for the 737, said at the briefing that Boeing Company has developed an enhanced angle of attack system that will alert pilots in the event of sensor failure and replace multiple alerts that may cause pilots to lose orientation. He stated that the company plans to complete the retrofit of existing fleets within two years. Boeing Company executives said that the certification work for the 777X, the successor to the 747 jumbo jet with twin engines, is also accelerating. This aircraft features an innovative folding wingtip design to adapt to existing airport infrastructure layouts, originally planned for certification in 2020 but delayed extensively due to the COVID-19 pandemic and the turbulence caused by the grounding of the 737 MAX. About 50% of the required certification flight tests have been completed, and this model is expected to enter service in 2027.