Six years is a long time in aviation. Long enough for a lot of things to go wrong, and long enough for Boeing to finally get one thing right. The planemaker is expected to receive Federal Aviation Administration certification for its long-delayed 737 MAX 10 on Tuesday, according to Reuters, which cited sources familiar with the plans.
U.S. Transportation Secretary Sean Duffy is expected to make the announcement during a visit to Boeing's factory in Everett, Washington. The FAA wrapped up its final certification review on Friday, so the paperwork is essentially done. All that's left is the photo op.
For context, the 737 MAX 10 (BA) is the largest and longest variant in Boeing's 737 MAX single-aisle family. It's designed to seat up to 230 passengers and goes head-to-head with the Airbus A321neo. Airlines have ordered nearly 1,500 of them, which works out to roughly 30% of Boeing's outstanding 737 backlog. That's not a niche product. That's a big chunk of the order book.
The customer list reads like a who's who of global aviation: United Airlines Holdings Inc. (UAL), Delta Air Lines Inc. (DAL), Alaska Air Group Inc. (ALK), American Airlines Group Inc. (AAL) and Ryanair Holdings PLC (RYAAY).
Boeing originally planned to start delivering the MAX 10 in 2020. That did not happen. Stricter regulatory scrutiny following two fatal MAX 8 crashes, engine anti-ice system issues and software concerns all conspired to push certification back. The FAA approved the smaller MAX 7 in August, so there's finally some forward motion in the family. Boeing is also still working toward certification of its 777-9 aircraft, with deliveries expected in 2027.
Boeing Also Built an AI Platform, Because of Course It Did
Separately on Tuesday, Boeing introduced Dataliner, an AI-powered platform designed to help airlines improve fleet maintenance and operational decisions. It was developed with Microsoft Corp. (MSFT) and uses Azure AI Foundry and data technologies to combine aircraft information with Boeing's engineering expertise.
The pitch is straightforward: help airlines anticipate maintenance needs, identify risks and improve fleet-wide visibility while retaining control over their own data. In a industry where unplanned downtime is expensive and safety is non-negotiable, that's a sensible pitch. Whether airlines bite is another question.
What the Charts Say
Boeing stock slipped 0.34% Tuesday, bucking broader market gains as the Nasdaq Composite rose 0.18% and the S&P 500 advanced 0.49%. Investors are clearly waiting for the quarterly earnings report before getting too excited about anything.
Boeing shares traded near their 20-day simple moving average (SMA) of $190.48 but remained below key longer-term levels. The stock was 6.3% below its 50-day SMA of $203.67, 10% below its 100-day SMA of $212.06 and 12.9% below its 200-day SMA of $219.19. Over the past 12 months, Boeing has lost 11.98%.
There is a small silver lining. The moving average convergence divergence (MACD) indicator remained above its signal line, suggesting selling pressure may be easing. Still, the stock's 50-day SMA remained below its 200-day SMA, extending the bearish death cross pattern that formed in September. Traders are watching support at $184 and resistance at $215.50. A move above resistance could signal improving momentum, while a break below support could bring renewed selling pressure.
Earnings Are Coming
Boeing is scheduled to report third-quarter earnings on Oct. 27. Analysts expect a loss of 19 cents per share, compared with a loss of $7.47 per share a year earlier. Revenue is expected to rise to $24.42 billion from $23.27 billion.
The stock carries a consensus Buy rating and an average analyst price forecast of $269.42. Recent analyst actions include:
- Morgan Stanley: Maintained Equal-Weight and lowered its price forecast to $225 on Oct. 19.
- RBC Capital Markets: Maintained Outperform and lowered its forecast to $235 on Oct. 15.
- Bernstein: Maintained Outperform and lowered its forecast to $278 on Oct. 12.
Boeing shares were down 0.34% at $190.76 at the time of publication Tuesday, according to market data.