Boeing's first 737 Max 7 delivery delayed to 2024

US plane maker expects model to be certified by Federal Aviation Administration

The Boeing 737 Max 7. Reuters
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Boeing expects the delivery of its first 737 Max 7 to be delayed until next year, the plane maker said in a filing to the US Securities and Exchange Commission.

The company, based in Arlington, Virginia, still expects the model to be certified this year by US regulatory body the Federal Aviation Administration (FAA), it said on Wednesday.

"We are following the lead of the Federal Aviation Administration (FAA) as we work through the certification process of the 737-7 and 737-10 models," Boeing said.

Boeing expects the 737 Max 10 to begin FAA certification flight-testing this year with first delivery in 2024, it said.

"Safety dictates the timeline of certification projects. We cannot discuss ongoing certification projects," the FAA said in a separate statement.

Boeing must first gain approval from the FAA for its smaller 737 Max 7 model before the 737 Max 10. Both aircraft have faced major delays amid increased regulatory scrutiny after criticism of the earlier certification process for the 737 Max 8. Two fatal crashes involving that model took place in 2018 and 2019, respectively.

"In 2022, we provisioned for the estimated costs associated with safety enhancements that will be required on all new 737 Max aircraft and previously delivered 737 Max aircraft one year and three years after the issuance of a type certificate for the 737-10, respectively," Boeing said.

"We do not expect those costs to be material. If we experience delays in achieving certification and/or incorporating safety enhancements, future revenues, cash flows and results of operations could be adversely impacted."

Boeing this week reported a net loss of $149 million, or 25 cents per share, in the second quarter after delays and cost issues in its defence and space programme, despite an 18 per cent increase in revenue.

The US plane maker, which has struggled to increase production as travel demand rebounds in the post-Covid era, made a net profit of $160 million in the same period last year, it reported on Wednesday.

Updated: July 27, 2023, 1:33 PM