FAA clears smallest Boeing 737 Max to fly after years of delays

The Federal Aviation Administration has certified the Boeing 737 Max 7, the smallest model in the best-selling family of aircraft, after nearly a decade of delays.

The agency on Monday said the approval “reflects years of sustained work to resolve complex technical issues and complete a thorough review of the airplane’s design and supporting safety analyses.”

Carriers including Southwest Airlines expected to fly the plane before the pandemic, but increased regulatory scrutiny following the fatal crashes of the in-service Max 8, in 2018 and 2019, other safety and manufacturing crises, and the redesign of an engine anti-icing system delayed certification.

Airlines can finally start flying passengers soon after planes are certified, but it can take them months to work them into schedules.

The FAA said it “required the MAX-7 to incorporate key improvements … including updates to the flight-control software, flightcrew alerting system, and a redesigned engine anti-ice system,” adding that those changes prevent the engine from overheating.

The plane maker is also awaiting certification from the FAA of another long-delayed model, the 737 Max 10, which is the largest in the family and one that some carriers expected to start flying in 2020, as well as the manufacturer’s largest plane, the 777X.

Boeing has about 40 of the 737-7s and 737 Max 10s built and in inventory already, and the FAA approval could help the manufacturer bring in much-needed cash, Jefferies analyst Sheila Kahyaoglu said in a note Sunday. Boeing and other manufacturers receive the bulk of an airplane’s price when they hand it over to customers.

Boeing stock rose more than 5% in afternoon trading Monday.

The manufacturer, a top U.S. exporter, has been working to ramp up production of its 737 Maxes and 787 Dreamliners, key to its recovery after years of crisis since airlines and other customers pay the bulk of the aircraft’s price upon delivery. Boeing opened a new production line in Everett, Washington, in July for its 737 Max airplanes.

The company has been working to win back the trust of the FAA, and has made strides, including in mid-July, when the FAA said it could once again issue airworthiness certificates for its bestselling 737 Max aircraft and 787 Dreamliners. The agency stripped that from Boeing after the Max 8 crashes, which killed 346 people.

Boeing didn’t immediately comment on Monday.

— CNBC’s Michele Luhn contributed to this report.