Another Overhang Removed for Boeing
Note: The September Monthly Roundup will be published on Monday, October 5.
We have some breaking headlines on the Portfolio’s position in Boeing ($BA) and it is another positive one for the company and our position, which we expanded upon earlier today.
We are referring to the FAA issuing a statement that the Boeing 737 MAX 10 software issue that recently weighed on BA shares isn’t a flight safety issue. This paves the way for the aircraft certification and strongly suggests that another one of the issues weighing on BA shares will fall to the wayside.
We’ll have more to say on this when we’ve had a chance to digest the larger statement and its implications, primarily for 2027 delivery expectations and corresponding cash flow and bottom-line results from Boeing. The 737 MAX 10 is estimated to account for ~30% of Boeing’s multiyear commercial aircraft backlog exiting Q2 2026.
For now, here is what is making the rounds:
“Following a thorough review, a panel of FAA safety experts on Friday determined a software issue in certain Boeing 737 MAX flight computers is not a safety concern… The FAA’s Corrective Action Review Board made that determination because pilots retain full control of the aircraft and the indications to the flight crew are clear and unambiguous.”
As we indicated in today’s pickup of BA shares, the next catalyst we are waiting for, and it may be one that leads us to upgrade our rating, is Boeing’s September delivery figures, which should be out in mid-October.
At the time of publication, TheStreet Pro Portfolio was long BA.
