Boeing Clears Regulatory Hurdle as Turnaround Gains Momentum
Boeing's fortunes have been slowly improving over recent months, but after years of scandals and regulatory woes, investors are still cautious about betting on a full recovery.
The latest milestone came this week when US aviation authorities certified the 737 MAX 7, a key member of Boeing's flagship family that has been stuck in limbo for nearly a decade. This clears the way for approval of the final remaining variant, the MAX 10.
Boeing's backlog of orders is enormous, with thousands of aircraft waiting to be delivered. Clearing this bottleneck could finally allow Boeing to generate significant revenue from its vast order book.
Aircraft deliveries have been increasing at a healthy pace, and management has been expanding production capacity to meet demand. However, operational concerns remain, including thin and volatile profitability, and the company's own leadership has warned it will take another couple of years to put its house in order.