Boeing stock swung higher Friday on reports that federal regulators will ease restrictions on aircraft deliveries. The Dow Jones manufacturer also landed major orders from Norwegian Group and Turkish Airlines.
Boeing will soon regain authority from the Federal Aviation Administration to perform final safety checks for its 737 Max jets, the Wall Street Journal reported Friday, citing unnamed sources. FAA inspectors will remain involved in issuing airworthiness certificates, which are required before a plane is cleared to fly with passengers.
The approval could come as early as today.
The FAA is also expected to allow Boeing to boost its 737 Max production rate to 42 planes per month from the current level of 38. The agency imposed the production limit after a fuselage panel blew off midair during an Alaska Airlines flight. If allowed to increase its cap, Boeing plans to keep production at 42 jets for several months to watch for issues. It then plans to increase the production rate by another five planes.
Boeing Lands New Orders
Elsewhere, Boeing on Friday announced that Norwegian Group placed an order for 30 new 737 airplanes as the airline looks to expand its European services.
The announcement marks Norwegian Group's first direct Boeing order since 2017 and will increase its 737 Max order book to 80 planes. Norwegian in 2022 had restructured its order with a firm commitment for 50 of the 737-8 planes, with options for an additional 30.
Boeing also announced a massive order with Turkish Airlines. Turkish Airlines placed an order for up to 75 of Boeing's 787 Dreamliners, and announced its intent to purchase up to 150 more 737 Max planes. The orders combined will double Turkish Airlines' Boeing fleet, and could exceed $22 billion according to reports from the Seattle Times.
The deal comes after Turkish President Recep Tayyip Erdogan met with President Donald Trump at the White House on Thursday.
Boeing earlier this week secured a deal with Uzbekistan Airways for up to 22 of its 787 Dreamliners. That deal is valued around $8 billion according to President Trump.
Boeing Stock
BA shares surged 3.6% Friday.
Boeing has fallen nearly 6% in September, threatening to snuff a five-month rally. Shares had dropped below their 10-week moving average, while holding well above their 40-week line.
Boeing stock remains up 25% this year.
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