Boeing 737 Max 10 certification gets boost as FAA says 'software glitch not a safety issue'

Boeing's 737 Max 10 certification gets a boost after a Federal Aviation Administration (FAA) panel determined that a software glitch affecting certain 737 Max flight computers does not pose a safety risk.

The FAA's Corrective Action Review Board made the determination on Friday after examining the issue, which could occur when pilots abort a landing attempt.

Following the report, Boeing shares rose 1.6% to $195.40 as of 2:47 p.m. New York time.

The FAA said in its statement that the glitch is "not a safety concern" because pilots retain full control of the aircraft and the information displayed to the flight crew is clear and unambiguous.

The issue can arise during a go-around, when a pilot decides to abandon a landing and climb again. In such a situation, the autopilot shifts to a simpler level of automation for pitch control. However, it significantly increases the workload for pilots compared with the aircraft's standard mode.

The FAA will consider further actions as needed, it added.

"The agency will also issue a special airworthiness information bulletin to US carriers and foreign regulators to ensure they're aware of Boeing's bulletin," the official said.

"We will continue to follow the lead of the FAA as our engineers work on the next software update," Boeing said in a statement following the FAA's determination.

GE Aerospace, which supplies the software, said it supports the FAA's decision and will continue working with Boeing on the update.

The smaller 737 Max 7 was certified in August with the affected software.

The Max 10 is already years behind schedule and is important to Boeing's efforts to generate cash and strengthen its balance sheet. Orders for the aircraft currently exceed 1,500.

United has also said it is not accepting deliveries of new aircraft equipped with the glitch, while Southwest said recent and upcoming Max 8 deliveries would not have the malfunctioning software.