A significant development may be on the horizon for Boeing’s long-awaited aircraft as it seems to have passed a crucial regulatory stage. According to a report by the Air Current on Friday, the Federal Aviation Administration (FAA) has commenced key certification flights for Boeing’s 777x plane. This news prompted Deutsche Bank to foresee a potential revenue boost for the company, which has faced several challenges recently.
“This marks a major step forward in the path toward certification and ultimately first deliveries for 777X, and comes over four years since the first flight, compared to typical milestone gaps from first flight to TIA usually being less than six months,” analyst Scott Deuschle noted in a message to clients.
One of the foremost issues has been increased FAA scrutiny and a production slowdown imposed after a door plug fell off a 737 Max 9 plane in January. Additionally, some models still await FAA certification before they can be delivered, including the 737 Max 10 and the larger 777x.
If the FAA certification flights indicate that the 777x is close to clearing the regulatory process, Deuschle believes that the estimated 20 planes Boeing has in storage could potentially generate about $2 billion in revenue by the end of next year. To put this in perspective, Boeing’s latest annual report states the company earned approximately $78 billion in 2023.