Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Boeing 737 MAX Returns to U.S. Skies

By Lou Whiteman - Dec 29, 2020 at 1:58PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

American Airlines becomes the first U.S. carrier to fly the plane since it was recertified.

Boeing's ( BA 3.73% ) 737 MAX returned to service in the U.S. on Tuesday, as American Airlines Group ( AAL 11.45% ) made good on its plan to restart commercial flights using the plane before year's end.

American flight 718 took off from Miami at 10:24 a.m. EST bound for New York's LaGuardia Airport, operating a Boeing 737 MAX 8 airplane. It's the first U.S. commercial flight for the MAX since March 2019 when the plane was grounded after a pair of fatal accidents.

The flight landed safely in New York at 1:15 p.m.

An American 737 in flight.

Image source: American Airlines.

The 737 MAX was recertified in November, and American soon after announced plans to be the first U.S. carrier to fly it again. American Airlines president Robert Isom was scheduled to be aboard both the first flight and the plane's return flight to Miami later in the day.

The plane has been in operation in Brazil since early December.

Tuesday's flight is an important symbolic milestone for Boeing, but it does little to change the outlook for the stock. Boeing shares lost nearly 75% of their value early in 2020 but has made back more than half of that loss in recent months, and the 737 MAX recertification should mean the worst is over for the company.

But Boeing still has an inventory of more than 400 planes to deliver at a time when airlines are retrenching due to COVID-19. Boeing currently hopes to resume 737 MAX production to more than 30 planes per month in early 2022, well below the pre-grounding and pre-pandemic goal to manufacture more than 50 airframes per month by now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Boeing Company Stock Quote
The Boeing Company
$205.89 (3.73%) $7.40
American Airlines Group Inc. Stock Quote
American Airlines Group Inc.
$18.52 (11.45%) $1.90

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.