FAA Advances 737 MAX 10 Testing as Alaska Air Orders 105 Jets and 5 Dreamliners
The FAA approved Boeing’s largest 737 MAX variant, the MAX 10, to advance into the second phase of flight testing after long-delayed certification. Alaska Air Group signed a major purchase for 105 737-10 jets plus five 787 Dreamliners, reinforcing Boeing’s order backlog and manufacturing pipeline.
1. FAA Advances Certification of 737 MAX 10 to Flight Testing Phase 2 While Technical Challenges Persist
The Federal Aviation Administration has approved Boeing’s largest 737 MAX variant, the MAX 10, to enter the second phase of its certification campaign, more than three years after the company filed for approval in early 2021. This move clears the path for advanced flight envelope testing—covering high-angle stalls, crosswind landings and performance at hot-and-high airports—but key technical hurdles remain. Boeing must demonstrate compliance with revised landing-gear strength standards introduced after the original MAX 8 certification and resolve ongoing flight-control software discrepancies identified during initial flight trials. Successful completion of Phase 2 would mark a milestone toward type certification, but Boeing warns investors that delays in part deliveries from Spirit AeroSystems and GE Aerospace’s engine supply chain could extend the timetable into late 2026.
2. Boeing Faces Margin Pressure as Airbus Maintains Operational Stability
As Boeing works through its MAX 10 certification, the company’s commercial-aircraft margins are expected to lag Airbus’s full-year operational profit margin of roughly 12%. Boeing projects an 8% margin in 2026, reflecting continued costs tied to engineering fixes and production rate increases at Renton and Charleston. The duopoly of Boeing and Airbus remains supported by a combined backlog exceeding 12,000 jets, yet supply-chain constraints—particularly composite fuselage delivery and LEAP/XWB engine availability—are limiting Boeing’s targeted production ramp to 48 single-aisle jets per month. In contrast, Airbus is maintaining a 63-jet monthly rate, underpinned by steady A320neo family output.
3. Alaska Air Deal Underscores U.S. Manufacturing Momentum
In a transaction hailed by Transportation Secretary Sean Duffy as emblematic of “the golden age of American travel,” Boeing secured an order for 105 MAX 10 single-aisle jets and five 787 widebodies from Alaska Air Group. This deal, valued at more than $15 billion at list prices, represents the first major MAX 10 commitment following certification progress and highlights Boeing’s push to recapture market share in North America. Duffy emphasized the broader economic impact, citing plans to modernize air-traffic control and invest in domestic supply bases. For investors, the order underpins Boeing’s long-term narrowbody backlog—now exceeding 5,700 jets—and provides near-term visibility into production rates through 2028.