Boeing slumps 7% after FAA delays 737 MAX 10 certification

The US Federal Aviation Administration (FAA) announced on Monday that it will delay certifying Boeing's long-awaited 737 MAX 10 aircraft until a recently discovered software issue is fixed. This comes as a significant setback for Boeing, which aims to regain market share from Airbus in the single-aisle jet market. The software issue could prevent pilots from accessing automated flight guidance during specific landing scenarios, increasing pilot workload during go-arounds - when a pilot aborts a landing attempt, applies power, and climbs back into the sky to try to land again.

FAA Administrator Bryan Bedford stated that the FAA will conduct a review to determine if the software poses an unreasonable safety risk. Despite the concern, WestJet, a Canadian carrier operating the software on its 737 MAX fleet, reported no in-service issues and viewed the matter as non-safety critical. Boeing shares dropped 6.9% in response to the delay, reflecting concerns about further production halts.

Neither Alaska Airlines nor United Airlines currently use the affected software, but both companies are engaged with Boeing and the FAA in evaluating the situation.