FAA Delays Boeing 737 MAX 10 Certification Over Software Glitch Affecting Automated Landing Guidance

Boeing shares fell roughly 7% on Monday after the Federal Aviation Administration confirmed it will delay certification of the 737 MAX 10, the longest and final variant of Boeing's bestselling jet family, to assess a newly discovered software defect. The bug, which Boeing flagged last month, can cut off automated landing guidance if pilots must perform a go-around, meaning a missed approach where they abort a landing and attempt it again. FAA Administrator Bedford said he is unsure how long the delay will last, but stressed that pilots remain in control during go-arounds despite the issue.

The software flaw, introduced in a recent update, affects the autopilot and automated navigation system on 737 MAX jets running software version 14.1. Southwest Airlines and United Airlines reportedly told Boeing they do not want deliveries with the flawed software and requested an earlier software version instead. WestJet, which uses the 14.1 version on its MAX fleet, said it has not experienced any in-service events related to the issue and does not consider it a safety risk. Analysts at Investing.com noted that 31% of Boeing's undelivered order backlog is tied to the MAX 10, raising the stakes of any prolonged certification hold.

JPMorgan reiterated its rating on Boeing stock in the morning, before the FAA's announcement hardened the situation. Boeing shares, already under pressure earlier in the session on initial software glitch reports, extended their losses after the FAA confirmation to close down approximately 6-7%, dragging the Dow Jones Industrial Average down roughly 300 points, with Salesforce also among the index's biggest laggards.

In separate news, FTAI Aviation announced it has acquired 27 Boeing 737-700 aircraft from Canada's WestJet in one of its largest aircraft transactions to date. Additionally, NASA Administrator Jared Isaacman said Boeing Starliner components will be redesigned for a planned 2028 flight following the spacecraft's earlier troubled mission.