FAA Delays Boeing 737 Max 10 Certification Over Software Glitch

Boeing's (BA) stock plummeted by over 7% on Monday, marking its worst day in nearly 1.5 years as investors digested a fresh regulatory setback for the company's biggest 737 Max 10 variant jet.

The Federal Aviation Administration (FAA) is reportedly delaying certification of the 737 Max 10 due to a newly flagged software issue. The agency will wait until it decides whether the glitch is a safety of flight concern before approving the jet.

The issue, tied to flight-management software versions 14 and 14.1, can drop automated vertical navigation after a missed approach if the crew changes the planned path. Boeing reportedly told operators in August that the issue was not an immediate safety risk and said it had reminded airlines of existing procedures.

Southwest and United have told Boeing they do not want new jets with the affected software and would rather take an earlier version, according to The Wall Street Journal. Several U.S. airlines have stated their in-service Max fleets do not use those builds.