109-year-old embattled Dow 30 stock surges on deals

Boeing  (BA)  has faced significant challenges in the past few years, including Federal Aviation Administration (FAA) investigations, regulatory restrictions, a machinists’ strike in September 2024, and the ongoing labor dispute in St. Louis.

This series of events caused investor confidence and consumer trust to suffer, resulting in Boeing’s stock slipping considerably.

However, this week brought announcements of newly secured deals and some relief from FAA regulatory holds. 

  • FAA allows limited delegation of airworthiness certification to Boeing
  • Stock rises amid easing restrictions
  • Investor confidence grows with multiple new deals

On Friday, Sept. 26, the Dow 30 stock rose 4% during trading hours, contributing to a 2.6% gain this week and a 25% increase year-to-date.

FAA’s Organization Designation Authorization (ODA) allows manufacturers to issue airworthiness and production certifications on behalf of the FAA.

Boeing Stock rise 25% year-to-date

Image source: Schmidt/AFP via Getty Images

FAA eases restrictions on Boeing

However, “The FAA stopped allowing Boeing to issue airworthiness certificates for 737 MAX airplanes in 2019 during their return to service following the Lion Air and Ethiopian Airlines crashes, and for Boeing 787 airplanes in 2022 because of production quality issues”, it said in its official statement.

More Airlines:

  • Airline cuts last flight into this US city, refunds available
  • TSA issues stern warning on item over 13 million Americans use
  • Spirit Airlines cuts more flights and jobs amid second bankruptcy

On Friday, the FAA announced it would allow limited delegation of its ODA authority to some 737 Max and 787 airplanes, effective Sept. 29, 2025. This news sparked a rise in the firm’s stock, which traded closer to its 52-week high of $242.69 in July 2025.

The decision followed a thorough review of Boeing’s production quality, though the FAA stated that it will continue to “maintain direct and rigorous oversight of Boeing’s production processes.”

Even this partial allowance has been enough to encourage investors to turn optimistic about the company’s future.

Related: Boeing surprises Wall Street with more safety concerns looming

This week’s close, however, delivered a reminder of the company’s persistent legal challenges. 

On Friday, Reuters reported that Boeing reached a settlement in the wrongful death lawsuit brought by the family of former employee and whistleblower Josh Barnett, who raised safety concerns in Boeing’s production site before his death in March 2024.

The agreement includes a $50,000 settlement to Barnett’s mother, who agreed to drop claims that the company contributed to her son’s death. Some terms of the settlement remain confidential.

The timing of the news may temper investor reaction as the market opens next week.

New Contracts Signal Market Confidence

Boeing also released information on several new contracts, signaling growing confidence in the aircraft manufacturer.

Norwegian Group placed an order for 30 737-8 airplanes and promised to increase its existing 737 MAX order, bringing the total to 80 airplanes. This marks Norwegian’s first order since 2017.

Geir Karlsen, CEO of Norwegian, said of the long-term partnership,

“By exercising the options and adjusting the delivery profile, we maintain flexibility while reinforcing our commitment to operating one of the most modern and fuel-efficient fleets in Europe. These aircraft will not only lower emissions but also provide our customers with an even better travel experience.”

Related: United Airlines will up flights to one of its most exotic destinations

Turkish Airlines’ also committed to purchasing 75 Boeing 787 Dreamliners and up to 150 737 MAX jets, making it the airline’s most significant single-aisle order from Boeing.

Prof. Ahmet Bolat, Turkish Airlines Chairman of the Board and the Executive Committee, expressed faith in Boeing’s quality, stating,

“The addition of these advanced Boeing aircraft to our fleet will not only enhance our operational capabilities but also become a significant element supporting Turkish Airlines’ 2033 Vision of expanding our fleet to 800 aircraft.”

Related: Southwest Airlines cites FAA guidance for strict new lithium battery rules

Separately, on Sept. 22, Boeing announced that Uzbekistan Airways ordered 22 Boeing 787 Dreamliners, the airline’s largest-ever purchase. “With its fuel efficiency and operational flexibility, the 787 Dreamliner will help Uzbekistan Airways expand into new markets, connecting more travelers to their rich culture,” said Brad MacMullen, Boeing senior vice president of Commercial Sales and Marketing, of the agreement.

Finally, on the defense side, Boeing was awarded a $125.58 million Army modification contract for its CH-Lot Four Aircraft, with an estimated completion date of October 2030.

This convergence of regulatory relief and consequential commercial orders from notable airlines marks a pivotal week for Boeing. While the FAA maintains strict oversight, investors see these achievements as steps towards regaining production efficiency and market confidence.

Related: AutoZone makes harsh move customers won’t like

#109yearold #embattled #Dow #stock #surges #deals

Leave a Reply

Your email address will not be published.