Boeing’s long-anticipated aircraft has potentially overcome a significant regulatory hurdle. Following a report from The Air Current that the Federal Aviation Administration has started key certification flights for Boeing’s 777X plane, Deutsche Bank suggests a revenue boost might be imminent for the beleaguered manufacturer.
“This marks a major step forward in the path toward certification and ultimately first deliveries for the 777X. It comes over four years since the first flight, compared to typical milestone gaps from first flight to TIA usually taking less than six months,” analyst Scott Deuschle wrote in a note to clients.
Despite Boeing facing heightened FAA scrutiny and a production slowdown after a door plug fell off a 737 Max 9 plane in January, the company is making progress. Some models, including the 737 Max 10 and the larger 777X, still require FAA certification before they can be delivered.
If the start of FAA certification flights indicates that the 777X is nearing full regulatory clearance, Deuschle believes that the roughly 20 aircraft Boeing has in storage could generate $2 billion in revenue by the end of next year. For perspective, Boeing’s latest annual report states it earned approximately $78 billion in 2023.