Boeing jumps 6% after its 737 Max plane receives FAA approval to fly again
- Boeing soared as much as 6% on Wednesday after the FAA approved the ungrounding of the 737 MAX plane.
- The approval of flight for the 737 MAX comes 20 months after it was initially grounded in March 2019 following two deadly crashes that shook regulators confidence in the plane.
- American Airlines is expected to launch the first customer flight of the 737 Max in late December.
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Boeing reached a big milestone on Wednesday after the Federal Aviation Administration officially approved the ungrounding of the 737 MAX airplane.
The move came 20 months after the initial grounding in March 2019 following two deadly crashes that shook both regulators and consumers confidence in the plane.
Shares of Boeing soared as much as 6% on Wednesday following the development.
According to a statement from the FAA, "FAA employees worked diligently to identify and address the safety issues that played a role in the tragic loss of 346 lives aboard Lion Air Flight 610 and Ethiopian Airlines Flight 302."
FAA Administrator Steve Dickinson, who signed the ungrounding order on Wednesday, "personally took the recommended pilot training and piloted the Boeing 737 MAX, so he could experience the handling of the aircraft firsthand," the statement said.
Still, Boeing has a few "design changes" to make before its plane can return to commercial use, according to the FAA.
According to CNBC's Phil LeBeau, American Airlines is expected to be the first aircraft carrier to launch commercial flights of the 737 MAX, sometime in late December.
While the news is a welcomed development for Boeing, it comes at a time when demand for airplanes is likely in limbo, as the global COVID-19 pandemic has put a huge dent in demand for air travel and economic uncertainty remains high.
