Boeing 737 MAX Production and Software Issues

On October 20, 2026, the Federal Aviation Administration granted final approval to the Boeing 737 Max 10, the largest variant in the manufacturer's best-selling airplane family, after years of regulatory delays following two fatal crashes in 2018 and 2019.

Airlines have ordered close to 1,500 Max 10 jets, representing roughly 30% of Boeing's total unfilled 737 order backlog, with major customers including United Airlines, Delta Air Lines, American Airlines, Ryanair, and Alaska Airlines.

Prior to certification, the Federal Aviation Administration determined on October 2 that a software glitch affecting certain 737 Max flight computers during a go-around maneuver was not a safety hazard and did not require a fix before approval.

Boeing Chief Executive Officer Kelly Ortberg stated in September 2026 that securing certification for the Max 10 is necessary to operate a new production line in Everett, Washington, and help reach a production rate of 52 jets per month.

On Tuesday, October 20, 2026, the U.S. Federal Aviation Administration is expected to approve Boeing's 737 MAX 10 for passenger service during a visit by Transportation Secretary Sean Duffy to the Everett, Washington manufacturing plant.

The certification arrives nearly a decade after the aircraft was launched at the June 2017 Paris Air Show, following severe delays triggered by safety crises including the 2018 and 2019 MAX 8 crashes and a 2024 Alaska Airlines MAX 9 incident.

Boeing holds nearly 1,500 orders for the MAX 10, representing about 30% of its total 737 backlog, with first deliveries scheduled to begin in 2027.

The aircraft accommodates up to 230 passengers and is designed to compete directly against Airbus's A321neo model family in the upper single-aisle market.

Approval of the MAX 10 completes the certification lineup for Boeing's four 737 MAX variants, following the August approval of the smaller MAX 7.

On October 16, 2026, Boeing and the Federal Aviation Administration held a Type Certification Board meeting, marking a final step toward regulatory approval for the 737 MAX 10 that could arrive as early as the following week.

The MAX 10 program accumulated extensive testing data totaling 976 flights and over 2,060 flight hours, alongside roughly 1,040 hours of ground testing before completing its campaign in July 2026.

Certification of the aircraft was previously disrupted by heightened regulatory scrutiny following historical safety crises, an engine anti-ice system issue, and a late September navigation software glitch that the Federal Aviation Administration ultimately deemed safe on October 2.

The long-delayed variant accounts for 1,555 unfilled orders representing roughly 30 percent of Boeing's total 737 backlog, with deliveries expected to begin in 2027.

Boeing plans to utilize the MAX 10—ordered by major carriers including United Airlines, Alaska Airlines, Delta Air Lines, American Airlines, and Ryanair—to help drive financial recovery and support production rate increases.

Lockheed Martin awarded Boeing a seven-year contract worth up to $14.7 billion to triple production of PAC-3 Missile Segment Enhancement seekers.

Aircraft lessor Avolon placed a firm order for 140 Boeing 737 MAX jets as part of a 250-aircraft transaction split with Airbus.

Boeing reported a negative EBITDA of roughly $2.9 billion despite trailing net income of about $2.09 billion, fueling investor concerns over cash generation and debt maturities.

The Federal Aviation Administration determined that a recent 737 MAX software issue is not a flight-safety concern, preserving certification progress for the MAX 10.

Boeing reported a Q2 loss of $0.76 per share, missing consensus estimates of a $0.34 loss, on revenue of $24.56 billion.

Lockheed Martin awarded Boeing a seven-year agreement worth up to approximately $14.7 billion to scale production of PAC-3 Missile Segment Enhancement seekers, a deal designed to triple output and expand the defense backlog.

Aircraft lessor Avolon placed a firm order for 140 Boeing 737 MAX narrow-body jets as part of a larger 250-aircraft split transaction with rival manufacturer Airbus.

TD Cowen lowered its price target on Boeing from $250.00 to $240.00 while maintaining a buy rating, pointing to a broader aerospace-sector de-rating.

Boeing reported a total order backlog of approximately $715 billion at the end of the second quarter, which includes $597 billion in commercial airplanes awaiting production and delivery.

During its fiscal second quarter, Boeing posted a loss of ($0.76) per share on revenue of $24.56 billion, missing consensus estimates of ($0.34) EPS while exceeding revenue forecasts.

On October 5, 2026, Boeing ($BA) received a seven-year, $14.7 billion undefinitized contract from Lockheed Martin ($LMT) to produce PAC-3 Missile Segment Enhancement seekers.

The agreement allows Boeing to triple production of the guidance components—which help Patriot missile interceptors track ballistic, cruise, and hypersonic threats—at its facility in Huntsville, Alabama.

The contract is part of a broader government push to scale annual PAC-3 interceptor production capacity from 600 units to 2,000 units.

Industry executives have warned that Congress has not yet appropriated funding for these deals, potentially delaying large-scale investments in facilities and components.

Surging demand driven by conflicts in Iran and Ukraine previously prompted the U.S. Army to award Lockheed Martin a separate contract worth up to $58.6 billion in July.

US Transportation Secretary Sean Duffy stated on Wednesday, September 30, 2026, that a software issue affecting certain Boeing 737 MAX aircraft presents no immediate safety threat and requires no fleet grounding.

The Federal Aviation Administration announced on Monday, September 28, 2026, that it would pause certification of the long-delayed 737 MAX 10 variant until the software defect is fully resolved.

Disclosed by Boeing on Saturday, September 26, 2026, the software anomaly can block pilot access to automated flight guidance during go-around landing maneuvers, increasing cockpit workload.

Boeing shares ($BA) declined approximately 1% following media coverage of the software glitch and regulatory review.

Following a separate incident on Tuesday where a Flydubai co-pilot attempted sabotage, President Trump praised the 737 MAX's structural integrity and CEO Kelly Ortberg.

The Federal Aviation Administration delayed certification of the 737 Max 10 after discovering a software bug that can cause the vertical navigation system to disengage during a missed landing approach.

Boeing shares fell 6.8% following the announcement, marking the company's largest intraday decline since October 2025.

The problematic software, supplied by GE Aerospace, was introduced while attempting to fix a previous navigation bug, and regulators have not yet determined if the new issue poses a flight safety risk.

The Max 10 is critical to Boeing's recovery strategy, with over 1,500 orders placed for the aircraft, which is designed to compete directly with the Airbus A321neo.

Boeing discovered a software defect in its 737 MAX fleet that can disable automated navigation functions during landings if pilots alter their flight path following a missed approach.

The Federal Aviation Administration is currently investigating the issue and reviewing Boeing's proposed software update, which aims to restore automated vertical navigation capabilities.

Major carriers including Southwest and United have requested that Boeing avoid delivering new aircraft equipped with the affected software, opting for older, stable versions instead.

The glitch, which Boeing initially identified in November 2024, could impact the ongoing certification process for the 737 MAX 10 and the operational rollout of the MAX 7.

Boeing shares fell 3.7% to $201.96 on double the average daily trading volume after CEO Kelly Ortberg admitted that stabilizing 737 MAX production is taking longer than projected.

The company secured a $36.2 billion order from Korean Air for 103 aircraft and is nearing a 150-jet deal with Turkish Airlines, adding to a record $715 billion commercial backlog.

The U.S. Department of Defense increased the contract ceiling for the KC-46 Pegasus tanker by $13.4 billion, bringing the total potential value to $19.1 billion.

Boeing carries a debt-to-equity ratio of 6.77, with $45.9 billion in consolidated debt against $20 billion in cash and marketable securities as of the end of June.

Boeing shares fell more than 5% on September 16, 2026, after CEO Kelly Ortberg admitted that 737 MAX production is taking longer to stabilize than anticipated.

The company is currently producing 47 aircraft per month, failing to maintain stability at that rate due to specific bottlenecks in wing production at the Renton, Washington facility.

Boeing aims to eventually increase output to 52 planes per month, though the company has not yet provided a specific timeline for reaching this target.

Certification for the 737 MAX 10, the largest model in the series, is expected "very soon" following the recent August certification of the smaller MAX 7 variant.