Boeing said to not expect MAX 10 approval before summer 2023

Boeing 737 MAX

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Boeing (NYSE:BA) doesn’t expect to receive approval for the 737 MAX 10 before next summer, Reuters reported, citing a Federal Aviation Administration letter sent on Monday. The forecast magnifies worries about the aircraft maker’s timeline for deliveries.

The company has a December deadline for regulatory approval for the MAX 10, which is longer than 737 MAXs now in service, and a shorter version, the MAX 7. Without an extension from Congress, Boeing would have to revamp the jets to meet new cockpit-alerting requirements, possibly delaying deliveries.

“With regard to the 737-10, Boeing’s current project plan timeline has the 737-10 receiving an amended type certificate no sooner than summer 2023,” acting FAA Administrator Billy Nolen said in the letter to Sen. Roger Wicker, the top Republican on the Senate Commerce Committee, two sources told Reuters.

The FAA, Boeing and Wicker’s office declined to comment, Reuters reported.

The report comes as airlines face a shortage of new jets from Boeing and archrival Airbus as travel rebounds from the pandemic, according to The Wall Street Journal.

Boeing has fallen 39% this year, compared with a 23% decline for the S&P 500 Stock Index (SP500). The plane maker’s stock rose 4.1% on Monday for the biggest gain in three days as markets advanced while bond yields fell.