Boeing’s long-anticipated aircraft project might have just overcome a significant regulatory challenge. According to a report from the Air Current on Friday, the Federal Aviation Administration (FAA) has commenced key certification flights for the company’s 777X plane. Deutsche Bank analysts are optimistic that this could soon result in a revenue boost for the troubled planemaker.
“This marks a major step forward in the path toward certification and ultimately first deliveries for 777X, and comes over 4 years since first flight, versus typical milestone gaps from first flight to TIA typically clocking in at less than 6 months,” analyst Scott Deuschle noted in a client advisory.
Despite the progress, Boeing has faced hurdles including 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, notably the 737 Max 10 and the larger 777X.
If the FAA certification flights indicate that the 777X is nearing full regulatory clearance, Deuschle suggests that the nearly two dozen planes Boeing has in storage could generate $2 billion in revenue by the end of next year. This is a substantial sum considering Boeing’s latest annual report recorded approximately $78 billion in total revenue for 2023.