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FAA clears smallest Boeing 737 Max to fly after years of delays

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FAA clears smallest Boeing 737 Max to fly after years of delays

The Federal Aviation Administration has certified the Boeing 737 Max 7, the smallest model in the bestselling family of aircraft, after nearly a decade of delays.

The agency on Monday said the approval “reflects years of sustained work to resolve complex technical issues and complete a thorough review of the airplane’s design and supporting safety analyses.”

Carriers including Southwest Airlines expected to fly the plane before the pandemic, but increased regulatory scrutiny following the fatal crashes of the in-service Max 8, in 2018 and 2019, other safety and manufacturing crises, and the redesign of an engine anti-icing system delayed certification.

Southwest said in a statement that “certification is an important step toward continuing to modernize our all-Boeing 737 fleet with upgraded interiors and more fuel-efficient aircraft to fit our Customers’ preferences and demand patterns.”

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Airlines can finally start flying passengers soon after planes are certified, but it can take them months to work them into schedules.

Boeing said in a blog post Monday that it and Southwest are preparing for delivery of the first airplane.

“This important certification validates the rigor of our airplane’s design and recognizes the determination and resilience of our 737 MAX development team,” Stephanie Pope, president and CEO of Boeing Commercial Airplanes, said in a statement. 

The FAA said it “required the MAX-7 to incorporate key improvements … including updates to the flight-control software, flightcrew alerting system, and a redesigned engine anti-ice system,” adding that those changes prevent the engine from overheating.

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The plane maker is also awaiting certification from the FAA of another long-delayed model, the 737 Max 10, which is the largest in the family and one that some carriers expected to start flying in 2020 as well as the manufacturer’s largest plane, the 777X.

Boeing has about 40 of the 737-7s and 737 Max 10s built and in inventory already, and the FAA approval could help the manufacturer bring in much-needed cash, Jefferies analyst Sheila Kahyaoglu said in a note Sunday. Boeing and other manufacturers receive the bulk of an airplane’s price when they hand it over to customers.

Boeing stock rose more than 6% in afternoon trading Monday.

The manufacturer, a top U.S. exporter, has been working to ramp up production of its 737 Maxes and 787 Dreamliners, key to its recovery after years of crisis since airlines and other customers pay the bulk of the aircraft’s price upon delivery. Boeing opened a new production line in Everett, Washington, in July for its 737 Max airplanes.

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The company has been working to win back the trust of the FAA, and has made strides, including in mid-July, when the FAA said it could once again issue airworthiness certificates for its bestselling 737 Max aircraft and 787 Dreamliners. The agency stripped that from Boeing after the Max 8 crashes, which killed 346 people.

— CNBC’s Michele Luhn contributed to this report.

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Alibaba Shares Surge Over 5% as New Qwen 3.8-Max AI Model Boosts Investor Confidence in Cloud Growth

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Baidu HQ

Alibaba Group Holding Ltd. shares rose more than 5% in U.S. trading Monday after the Chinese technology company unveiled its latest and most capable artificial intelligence model, reinforcing its position in the intensifying domestic and global AI competition.

The New York-listed American depositary receipts climbed $6.20, or 5.07%, to $128.45 as of early afternoon Eastern time. The advance tracked gains in the company’s Hong Kong-listed shares, which also moved higher following the announcement.

Alibaba released Qwen 3.8-Max, described as the flagship model in its Qwen series and its most powerful to date. Reports indicated the model features approximately 2.4 trillion parameters and demonstrates improved performance across programming, office applications, scientific research and complex long-cycle tasks. Company materials and market coverage positioned it as competitive with leading systems, including recent offerings from other Chinese developers and models associated with Anthropic.

Alongside the model launch, Alibaba initiated a public beta of QwenWork, an enterprise-oriented product available to individual and business users via its official website. The combination of the advanced model and the enterprise tool was cited by market participants as enhancing Alibaba’s competitive standing in AI infrastructure and applications, areas closely tied to demand for its cloud computing services.

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The AI developments come as Alibaba continues to emphasize growth in its Cloud Intelligence Group. In its most recent reported results for the quarter and fiscal year ended March 31, 2026, the company showed solid momentum in cloud revenue even as overall group profitability faced pressure from investments in other areas. Cloud Intelligence Group revenue rose significantly year over year, with external cloud sales and AI-related product revenue recording strong expansion, including multiple consecutive quarters of triple-digit growth in AI products.

Investors have focused on the potential for AI services to drive higher-margin cloud business over time. Alibaba has invested heavily in computing capacity and model development amid competition from both domestic rivals and international players. The latest model release arrives ahead of the company’s next earnings report, expected in late August, when further details on cloud growth, AI monetization and overall profitability trends are anticipated.

Alibaba’s broader business spans e-commerce platforms such as Taobao and Tmall in China, international digital commerce, cloud computing, and various technology and logistics operations. The company has navigated a challenging environment in recent years marked by regulatory scrutiny in China, softer consumer spending at times, and geopolitical tensions affecting technology access and cross-border operations.

Shares of Alibaba and other Chinese technology companies have experienced substantial volatility. The ADRs have traded in a wide 52-week range, reflecting shifting sentiment toward Chinese equities, AI investment themes, and macroeconomic conditions. Recent sessions have shown renewed interest in names with visible AI exposure as investors rotate toward perceived value opportunities in the sector.

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The model launch also occurs against a backdrop of rapid iteration among Chinese AI developers. Competitors have released large-scale models, and access to advanced computing resources remains a key factor. Separate reports in recent days noted Alibaba’s involvement in providing computing capacity related to other domestic AI efforts, underscoring the interconnected nature of the ecosystem.

Market reaction Monday reflected optimism that continued AI progress could support longer-term growth in high-value cloud and software services. Analysts tracking the company have pointed to cloud revenue acceleration and improving unit economics in certain investment areas as potential catalysts, though near-term results have been mixed due to spending on user acquisition, technology infrastructure and competitive initiatives such as quick commerce.

Alibaba maintains a substantial cash position that provides flexibility for ongoing research and development and capital expenditures. Management has pursued share buybacks at various points, signaling confidence in the long-term value of the business while returning capital to shareholders.

Risks remain, including regulatory developments in China and the United States, competition in both e-commerce and AI, execution on converting model capabilities into sustained revenue and margin expansion, and broader economic conditions affecting consumer and enterprise spending. Geopolitical factors and technology export restrictions continue to influence the operating environment for Chinese technology firms.

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Nevertheless, the positive response to Qwen 3.8-Max highlighted investor appetite for concrete advancements in Alibaba’s AI portfolio. The public beta of the enterprise product adds a commercial pathway for broader adoption. As the company prepares to report its next quarterly results, attention will center on the pace of cloud growth, the contribution of AI-related offerings, and progress toward more balanced profitability across its portfolio.

Trading volume was elevated as the shares advanced, consistent with heightened interest following product news. The move added to a period of recovery for the stock from earlier lows in 2026, though it remains well below prior peaks. Broader technology and Chinese equity sentiment also provided a supportive backdrop on the day.

Alibaba’s dual focus on defending and expanding its core commerce businesses while scaling AI and cloud capabilities remains central to its strategy. The latest model release serves as a tangible milestone in that dual approach, drawing market attention to the potential upside if execution continues and demand for advanced AI infrastructure and applications holds.

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Eisai Co., Ltd. (ESAIY) Q1 2027 Earnings Call Transcript

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript