Topline
Boeing’s stock surged over 7% on Monday as the Federal Aviation Administration certified the company’s 737 MAX-7 model, according to a statement, greenlighting the airplane in an extensive, 10-year review partially lengthened by fatal crashes involving the larger MAX 8 variant and stricter safety standards from the FAA.
The first Boeing 737 MAX 7 aircraft sits on the tarmac outside of the Boeing factory on February 5, 2018 in Renton, Washington.
Photo by Stephen Brashear/Getty Images
Key Facts
Boeing shares surged 7.4% to about $232 at 3 p.m. EDT.
The FAA’s review included evaluation of the MAX-7’s flight controls, flightcrew alerting and system safety assessments.
Boeing was required to make updates to the MAX-7’s flight-control software, flightcrew alerting system and its engine anti-ice system—which had to be redesigned after Boeing realized extended use of it in dry conditions could overheat part of the engine.
The review faced further challenges in 2018 and 2019 following the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302, both of which involved the Boeing 737 MAX 8 and killed 346 people in total, resulting in the grounding of the entire 737 MAX fleet.
Boeing’s aircraft faced more scrutiny following the 2024 Alaska Airlines door plug blowout, with Boeing withdrawing an exemption request for the MAX-7 after the incident.
The 737 MAX-7 is the smallest model of Boeing’s 737 MAX planes and is capable of carrying about 150 passengers.
SURPRISING FACT
Monday’s surge was enough to push Boeing’s stock into the positive for the year, as it is now up 5.7% since the start of 2026, when shares traded around the $227 mark.
Tangent
Last week, the FAA flagged 31,000 737 MAX seats for inspection, citing improper installations that could result in the seats separating from their tracks in an emergency.
Key Background
In addition to Boeing pulling its exemption request for the MAX-7 following the door plug blowout, the incident led to increased audits into Boeing targeting its production lines. The FAA also conducted unannounced inspections into the company’s assembly operations—an unprecedented move from the agency. Boeing has built around 30 units of the MAX-7 and nine units of the MAX-10, aviation analytics firm Cirium told Reuters, which noted the larger MAX-10 model accounts for at least 28% of outstanding MAX orders. The MAX-10 is expected to receive FAA approval before the end of the year.
Further Reading
Boeing Hid Faulty Parts That May Have Been Installed On New 737 Planes, Whistleblower Alleges (Forbes)