Boeing Just Dropped 3% After a 737 MAX Software Glitch Triggered an FAA Review

 

Boeing Just Dropped 3% After a 737 MAX Software Glitch Triggered an FAA Review — And GE Aerospace Is Quietly Stealing the Spotlight

**By a Market Analyst & Business News Writer | September 28, 2026**

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## The Glitch That Wouldn't Stay Hidden

Let me tell you about a moment that should make every Boeing investor — and every American who flies — sit up and pay attention.

It was a quiet Saturday morning when the Wall Street Journal dropped a story that Boeing had been sitting on for nearly **two years**. The planemaker had discovered a software glitch affecting its 737 MAX aircraft that could disable automated landing guidance during a specific and terrifying scenario: when pilots abort a landing and change their flight path mid-air.

The glitch was first identified in **November 2024**. Boeing concluded in **February 2025** that it wasn't a safety issue. It didn't tell airlines until **August 2026** — nearly **21 months later**.

Now the FAA is reviewing it. The agency is convening a **Corrective Action Review Board** to determine whether the issue poses a genuine safety concern. And Boeing stock is paying the price.

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## The Immediate Market Reaction

### Boeing Takes a Hit

Boeing shares fell approximately **3%** following the news, though the stock had already been under pressure heading into the weekend. On Friday, September 25, BA closed at **$198.07**, down **7.92% over the past 52 weeks**. Pre-market trading on Monday showed further weakness, with shares quoted at **$195.50**, down another **1.30%**.

The stock's 52-week range tells the story of a company that's been struggling for altitude: **$176.77 to $254.35**. Boeing is trading well below its highs, and this latest software issue isn't helping.

### GE Aerospace Holds Steady

Meanwhile, **GE Aerospace** — the engine maker that powers the 737 MAX — has been quietly outperforming. GE closed Friday at **$327.09**, up **2.29% on the day** and **8.92% over the past 52 weeks**. The stock's 52-week range is **$268.91 to $388.84**, and analysts have a consensus price target of **$400.05** — implying **22.31% upside**.

GE Aerospace's relative strength in the face of Boeing's troubles tells you something important: **The engine maker's fortunes aren't tied to Boeing's operational headaches.** GE generates revenue from aftermarket services, defense contracts, and a diversified customer base that includes Airbus. The 737 MAX glitch is Boeing's problem to fix.

### RTX Treads Water

**RTX Corporation** (formerly Raytheon Technologies) closed Friday at **$189.40**, up just **0.42%**. The stock has been under pressure recently, down **13.97% over the past month** and **7.7% in September alone**. RTX's recent weakness has less to do with Boeing and more to do with the unwinding of defense risk premiums after reports of potential de-escalation around the Strait of Hormuz.

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## What Exactly Is the Glitch?

Let me break this down in plain English, because the details matter.

### The Scenario

The glitch occurs during a **missed approach** — when a pilot decides not to land and instead climbs back into the sky to try again. This is a normal procedure, but a high-workload one.

Here's what happens: The crew is flying a precision approach with the autopilot engaged. They initiate a go-around and then **change the preprogrammed flight plan** in the aircraft's flight management computer. In that specific situation, the flight guidance system may incorrectly transition out of **Vertical Navigation mode (VNAV)** to a simpler pitch mode like Level Change or Vertical Speed.

VNAV follows the vertical profile the computer calculates from altitude and speed constraints. When it disengages, pilots have to manually manage those constraints themselves. Neither Level Change nor Vertical Speed follows the computer's vertical path.

### Why It Matters

This wouldn't be a big deal in cruise flight. But it happens **close to the airport**, where crew workload is already at its peak. Pilots have to manage altitude, speed, communications with air traffic control, and their route — all while preparing for another approach.

Boeing says the autopilot itself continues to function even when VNAV disengages, and pilots are trained to land without it. The company is working with airlines to formalize a procedure that would let pilots re-enable automated vertical navigation if the situation occurs.

### The Software Versions

The glitch affects **FMC software versions 14 and 14.1**. Boeing expects a permanent software fix in **2028** but is working to accelerate that timeline.

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## The Timeline That Raises Eyebrows

Here's where the story gets uncomfortable for Boeing.

| Date | Event |

|------|-------|

| **November 2024** | An airline first tells Boeing about the condition |

| **February 2025** | Boeing reviews it, concludes it's not a safety issue |

| **Early 2026** | Boeing receives "additional information from operators," launches formal safety review board |

| **August 2026** | Boeing notifies all 737 operators about the issue |

| **September 2026** | FAA convenes Corrective Action Review Board |

The **21-month gap** between Boeing first learning about the issue and notifying operators is the kind of detail that regulators and lawmakers tend to notice. Boeing has faced intense scrutiny since the 2018 and 2019 737 MAX crashes that killed **346 people**, and the 2024 door plug blowout on an Alaska Airlines MAX 9 only intensified oversight.

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## Which Airlines Are Affected?

Here's some good news for American travelers.

**Four major U.S. airlines** — Alaska, American, Southwest, and United — told CBS that **none of their in-service 737 MAX aircraft use the affected software**. Southwest specifically said "none of our fleet is equipped with Version U.14, including new deliveries of Max 8 airplanes".

For **new deliveries**, however, Southwest and United have told Boeing they **won't accept** aircraft with the affected software and would prefer earlier versions instead.

Internationally, the picture is less clear. **Air India Express** and **Akasa Air** operate about **100 MAX aircraft** between them, but it's unknown how many have the affected software. According to aviation data firm Cirium, there are **2,422 MAX 8 and MAX 9 aircraft** in service worldwide, and it's unclear how many are equipped with the glitchy software.

Boeing says it's working to determine the exact number.

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## The Human Touch: What This Means for You

Let me bring this down to earth.

### If You're Flying on a 737 MAX

The aircraft is **not** considered unsafe to fly. Boeing and the FAA both say the issue doesn't pose an immediate safety risk, and pilots are trained to handle the situation. The autopilot remains functional. The glitch affects a specific automated guidance mode during a rare sequence of events.

If you're nervous, you can check what aircraft you're flying on when you book. But there's no reason to avoid the MAX based on this issue alone.

### If You Own Boeing Stock

You're feeling the pain. BA is down **7.92% over the past 52 weeks** and **3% on the glitch news**. The stock's forward P/E of **169.77** tells you that investors are pricing in a massive earnings recovery that keeps getting pushed further into the future.

The bull case for Boeing rests on: (1) the 737 MAX 10 finally getting certified, (2) production rates recovering, and (3) free cash flow turning positive. Every software glitch, every FAA review, every delivery delay pushes that timeline back.

The analyst consensus remains **"Strong Buy"** with a **$273.50 price target** — implying **38% upside**. But that target has been falling, and patience is wearing thin.

### If You Own GE Aerospace Stock

You're in a much better position. GE is up **8.92% over the past 52 weeks**, has a **48.23% return on equity**, and is generating **$8.97 billion in net income** on **$50.64 billion in revenue**. The company's aftermarket services business is booming, and its defense segment provides stability that Boeing lacks.

The consensus price target of **$400.05** implies **22% upside**. GE is the cleaner way to play aerospace right now.

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## Frequently Asked Questions (FAQs)

### Q1: Is the 737 MAX unsafe to fly?

No. Boeing and the FAA both say the software glitch does not pose an immediate safety risk. The autopilot remains functional, and pilots are trained to land without automated vertical navigation. The issue occurs only in a specific landing scenario involving a missed approach and a changed flight plan.

### Q2: Why did Boeing wait nearly two years to tell airlines?

Boeing reviewed the issue in February 2025 and concluded it wasn't a safety concern. It wasn't until early 2026, when it received "additional information from operators," that it launched a formal safety review and notified airlines in August 2026. The delay has raised eyebrows among regulators and safety advocates.

### Q3: What is VNAV and why does it matter?

VNAV stands for Vertical Navigation. It's an automated mode that follows a vertical profile calculated by the flight computer. When it disengages, pilots must manually manage altitude and speed constraints — which adds workload during an already demanding phase of flight.

### Q4: How many aircraft are affected?

It's unclear. Boeing says it's working to determine the exact number. Four major U.S. airlines say their in-service fleets are unaffected. Southwest and United have asked Boeing not to deliver new aircraft with the affected software.

### Q5: Is this related to the MCAS issues that caused the 2018-2019 crashes?

No. This is a completely separate issue involving the flight management computer's vertical navigation mode during a missed approach. The MCAS system that caused the fatal crashes was a different software system entirely.

### Q6: Will the 737 MAX 10 certification be delayed?

It's possible. The FAA's Corrective Action Review Board will assess the issue and determine if additional steps are needed before the MAX 10 — which is awaiting certification — can enter service.

### Q7: Should I sell Boeing stock?

That depends on your investment thesis and risk tolerance. Boeing faces significant execution challenges, but its long-term backlog and duopoly position in commercial aerospace remain valuable. Consult a qualified financial advisor before making any decisions.

### Q8: Why is GE Aerospace doing better than Boeing?

GE Aerospace's business is diversified across engine manufacturing, aftermarket services, and defense. It sells to both Boeing and Airbus, and its aftermarket business generates recurring revenue. Boeing's fortunes are tied to getting its aircraft certified, built, and delivered — and every glitch delays that process.

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## Conclusion: A Familiar Pattern for Boeing

Boeing has been here before. A software issue. A delayed disclosure. An FAA review. A stock that can't seem to catch a break.

The 737 MAX glitch isn't a crisis on the scale of the MCAS disasters that grounded the fleet and killed 346 people. The aircraft is safe to fly. The fix is on the way. The sky isn't falling.

But the pattern matters. Boeing discovered an issue in November 2024. It decided it wasn't a safety concern in February 2025. It didn't tell airlines until August 2026. That's **21 months** of silence on a system that, while not catastrophic, could add to pilot workload during one of the most demanding phases of flight.

For investors, the message is clear: **Boeing's turnaround keeps hitting turbulence.** Every glitch, every review, every delay pushes the recovery further into the future. The stock is down 7.92% over the past year, and the forward P/E of 169.77 tells you just how much faith the market is placing in a future that keeps getting pushed back.

For GE Aerospace, the story is different. The engine maker is up 8.92% over the past year, generating massive free cash flow, and trading at a reasonable valuation relative to its growth. It's the cleaner way to play aerospace.

And for RTX, the stock is treading water — caught between defense sector volatility and commercial aerospace strength.

The 737 MAX glitch is Boeing's problem to solve. The question is whether this is just another bump in a long, bumpy road — or a sign that the road isn't getting smoother anytime soon.

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## Disclaimer

This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information contained herein is based on publicly available sources as of September 28, 2026. Stock market investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. The author and publisher are not responsible for any financial decisions made based on the information presented in this article. Always consult a qualified financial advisor before making any investment decisions. The author does not hold positions in any of the securities mentioned.

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