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Boeing (BA) is experiencing a reprieve today after Reuters reported that the U.S. Federal Aviation Administration (FAA) has concluded that the fuel control switch locking mechanisms on Boeing aircraft, including the 787 Dreamliner, are safe as India’s Aircraft Accident Investigation Bureau (AAIB) continues its investigation into the June 12, 2025, crash of Air India Flight AI-171. The AAIB’s preliminary report, released on July 11, disclosed that the Boeing 787’s fuel control switches moved from the “RUN” to “CUTOFF” position seconds after takeoff, resulting in a loss of thrust that led to the tragic crash, claiming 241 of 242 passengers and crew, plus 19 lives on the ground.

• The report referenced a 2018 FAA Special Airworthiness Information Bulletin, which recommended, but did not mandate, inspections of the fuel control switch locking mechanisms on several BA models, including the 787, due to potential risks of unintended disengagement. Cockpit voice recorder transcripts revealed one pilot questioning, “Why did you cut off?” with the other responding, “I didn’t,” suggesting the switch movement may have been unintentional or mechanical in nature.
• The AAIB’s recommendation for inspections, while not mandatory, underscores ongoing scrutiny of BA’s safety systems, though the FAA’s affirmation of the switches’ safety mitigates immediate regulatory pressure.
• This development significantly alleviates investor concerns about the potential issuance of an Airworthiness Directive (AD) that could have led to a temporary grounding of the 787 Dreamliner fleet, a scenario reminiscent of the 737 MAX groundings following the fatal crashes of Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019, which cost BA an estimated $21 bln in losses and severely damaged its reputation. The 787 program, with approximately 1,190 aircraft in service globally as of 2Q25, is a cornerstone of BA’s commercial portfolio, generating substantial revenue through its role in long-haul routes for major carriers like United Airlines (UAL), All Nippon Airways, and Qatar Airways.
• The 787 program has recently experienced positive momentum, with production rates stabilizing at five aircraft per month and orders accelerating, notably Qatar Airways’ commitment in June 2025 for up to 210 jets, including 130 787 Dreamliners valued at approximately $35 bln at list prices. The FAA’s confidence in the fuel switch locks reduces the risk of disruptions to this critical program, bolstering investor confidence in BA’s ability to maintain delivery schedules and capitalize on recovering global demand for widebody aircraft.
• Despite this positive development, BA remains under intense scrutiny as the AAIB investigation into Air India Flight AI-171 progresses, with a final report expected by 4Q25. The company continues to grapple with restoring credibility among regulators, airlines, and the public following years of safety and quality control issues. BA’s efforts to regain market share from its primary competitor, Airbus (EADSY), are ongoing, as EADSY has capitalized on BA’s setbacks, securing a 56% share of the commercial aircraft market in 2024 compared to Boeing’s 41%.

The Reuters report represents a bullish development for BA’s stock as the FAA affirmation of the fuel switch locks’ safety helps ease investor angst over the prospect of costly regulatory actions, providing breathing room for BA to focus on execution. The company is riding a wave of momentum fueled by rising global demand for fuel-efficient aircraft, although the ongoing Air India investigation underscores the fragility of BA’s recovery.