Boeing (NYSE:BA) stock is flying higher on Friday following positive news concerning its 737 Max jets.
The good news for Boeing comes from Patrick Ky, the executive director of the European Union Aviation Safety Agency (EASA). According to Ky, the company’s upgrades to the 737 Max could allow it to return to the skies sometime this year.
The changing stance on the Boeing 737 max comes as the EASA prepares for a Proposed Airworthiness Directive (PAD). This will be published next month. After a public review period, a final version of the PAD will be published.
So long as Boeing doesn’t run into any more trouble, the EASA news means that its planes will be able to return to the air after more than a year of being grounded. 737 Max jets haven’t been able to fly since two crashes resulted in a flight ban in March 2019, reports MarketWatch.
While Boeing 737 Max jets returning to flight is good news for BA investors, it doesn’t mean the company is ready for a complete turnaround. There are still other issues that could hamper its business for some time.
Chief among these in the novel coronavirus. While it’s true that travel has been getting better since the initial lockdowns for the pandemic, that doesn’t mean airlines are back in full force. That could be bad for Boeing if it can’t find buyers for its planes, The Motley Fool notes.
BA stock was up 3.9% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.