Boeing Stock Catalyst Lifts Alaska Air and Other 737 Max 7 Plays

The FAA's certification of the Boeing 737 Max 7 has provided a long-awaited catalyst for Boeing stock and its related commercial programs. The aircraft can now move from order books to delivery, affecting revenue timing, capacity planning, and sentiment around aviation demand.

For investors, this development is more about how it affects suppliers and airlines exposed to Boeing's production ramp-up than one headline move. Three stocks stand out as positively exposed to this development: Alaska Air Group (ALK), Compañía General de Electricidad (SNSE:CGE), and Spirit Aviation Holdings (FLYY.Q).

Alaska Air Group operates several airlines, including Alaska Airlines and Hawaiian Airlines, which rely heavily on Boeing jets. The company is currently loss-making, but with a 15% growth in premium revenue and an expanding loyalty ecosystem, its combination of fleet renewal, loyalty growth, and loss-making results could be a powerful mix that investors are not fully pricing in yet.

Compañía General de Electricidad provides exposure to Chile's electricity demand while also tying into the Boeing 737 Max 7 story through engine supplier CFM International. However, the company faces thin profitability and a dividend yield of near 5.95%, which is not well-covered by earnings or free cash flow.

Spirit Aviation Holdings, on the other hand, sits at the intersection of deep distress and potential recovery interest. The company is unprofitable and has less than one year of cash runway, but it also has critical Boeing exposure as a major fuselage and aerostructures supplier to the 737 Max family.