Boeing Gains FAA Certification Rights Amid Major Aircraft Orders

What's Happening?

Boeing has experienced a significant surge in its stock price, closing at $221.26 on September 26, 2025, marking a 46% increase over the past year. This rise is attributed to major aircraft orders and a pivotal decision by the Federal Aviation Administration (FAA) to partially restore Boeing's authority to certify its 737 MAX and 787 Dreamliner jets. The FAA's decision comes after Boeing lost its certification rights following the 737 MAX crashes in 2019. The new arrangement allows Boeing and the FAA to alternate weekly in issuing airworthiness certificates, signaling improved production quality and regained regulatory trust. Boeing has secured substantial orders from Uzbekistan Airways, Turkish Airlines, and is in talks with China for up to 500 jets, contributing to a backlog of $619 billion.

Why It's Important?

The FAA's restoration of certification rights is a critical milestone for Boeing, indicating a recovery in trust and production standards. This development is crucial for Boeing's financial health, as it allows the company to streamline its certification process and potentially increase production rates. The major orders from international airlines not only boost Boeing's revenue but also support thousands of U.S. jobs, highlighting the company's role in the national economy. However, Boeing faces intense competition from Airbus, which maintains a strong position in the narrowbody market. The restoration of certification rights and new orders are vital for Boeing's long-term recovery and competitiveness in the aerospace industry.

What's Next?

Boeing aims to ramp up production within FAA-imposed limits and resolve ongoing labor disputes, such as the machinists' strike at its St. Louis defense plant. The company is focused on maintaining the momentum of new orders and expects to reach break-even cash flow by the end of the year, with potential profitability in 2026. Analysts forecast modest losses for 2025 but anticipate positive earnings as demand for new aircraft remains robust. Boeing's future will depend on its ability to navigate airline demand cycles, geopolitical shifts, and environmental regulations while maintaining compliance and transparency under its Deferred Prosecution Agreement with the Department of Justice.

Beyond the Headlines

Boeing's comeback is not only about financial recovery but also about regaining trust from regulators and the public. The FAA's cautious green light and Boeing's strategic deals offer hope for sustained recovery. However, Boeing must execute flawlessly to maintain its trajectory, as any further regulatory or safety setbacks could jeopardize its progress. The company's ability to adapt to changing market conditions and regulatory environments will be crucial in securing its position as a leading aerospace manufacturer.