Boeing’s (BA) shares have been surging this year, marking a dramatic comeback for the plane maker after years of reputational damage and federal indictments due to two fatal crashes involving its 737 MAX jet.
The problems for Boeing began in 2018 with the crash of a 737 MAX in Indonesia, followed by another in Ethiopia in 2019, which killed 346 people and led to a worldwide grounding.
These crashes led to a Department of Justice (DOJ) criminal case and a record-breaking settlement.
Most recently, a mid-air panel blowout put the MAX back in the spotlight.
Boeing shareholders lost an estimated $87 billion between 2018 and 2024.
But last week the U.S. Federal Aviation Administration (FAA) said that it is easing restrictions placed on the company’s manufacturing of its 737 MAX and 787 Dreamliner planes, issuing so-called airworthiness certificates for both jets.
These certificates provide confirmation that the FAA deems the aircrafts are safe to operate. They had been revoked for Boeing following the 2018 and 2019 disasters.
“Safety drives everything we do, and the FAA will only allow this step forward because we are confident it can be done safely,” the agency said in a statement. “This decision follows a thorough review of Boeing’s ongoing production quality and will allow our inspectors to focus additional surveillance in the production process.”
The guideline changes go into effect on Monday.
Boeing’s stock climbed nearly 3.6% on Friday and is up nearly 25% for the year.
By scaling back restrictions, the FAA will allow Boeing to perform its own final safety inspections, which will likely speed up the time it takes to deliver aircraft to customers.
The agency said that it “will continue to maintain direct and rigorous oversight of Boeing's production processes.”
After the crashes in Indonesia and Ethiopia, the FAA required that each of the new jets being manufactured at the 737 MAX factory be inspected only by agency inspectors.
The FAA “had become concerned about pressure on Boeing employees to produce and deliver aircraft,” as The Wall Street Journal reported.
In fact, a documentary was produced about the company that accused Boeing of putting profits over safety, resulting in the fatal MAX crashes.
But sources tell the Journal that the FAA will now allow Boeing to produce 42 MAX planes a month, lifting its previous cap of 38.
The agency said that it will have more inspectors overseeing Boeing mechanics and observing the company’s safety culture, “ensuring that Boeing employees can report safety issues without fear of retribution.”
Boeing’s stock rally began in June when President Trump used the company as a “trade tool” during his trip to the Middle East, as Bank of America analysts noted.
Qatar Airways placed a historic order for up to 210 Boeing jets during Trump’s visit.
In May, China Airlines also ordered 14 new Boeing aircraft, marking a thaw in the U.S.-China aviation trade war.
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