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Boeing May Finally Replace the 737 MAX. Why Its Stock Is Dropping—and GE Aerospace Is Rising.

Sep 30, 2025 05:38:00 -0400 by Al Root | #Aerospace and Defense

The troubled 737 MAX was announced in 2011 and entered service in 2017. Boeing might be ready to design a new single-aisle jet. (Photo by David Ryder/Getty Images)

Key Points

Boeing might finally be ready to take the plunge and design a new single-aisle aircraft. That’s good news for its suppliers, but the market doesn’t seem excited at the prospect for Boeing if the stock reaction is anything to go by.

The aircraft maker is considering a new jet to replace the 737 MAX, The Wall Street Journal reported.

“Our teams continue to be focused on our recovery plan, including delivering on our existing backlog of nearly 6,000 commercial airplanes and certifying the new 737-7, 737-10, and 777-9 models,” said a Boeing spokesperson in an emailed statement.

“At the same time, as we have done over the decades, our team evaluates the market, advances key technologies, and improves our financial performance, so that we will be ready when the time is right to move forward with a new product.”

It’s a huge step that potentially commits the company to billions of dollars and multiple years of product development. The payoff is improved market share in key market segments.

Investors didn’t seem so thrilled. Boeing stock fell by 0.6%, closing at $215.83, while the S&P 500 rose by 0.4% and the Dow Jones Industrial Average gained by 0.2%.

Wall Street has speculated about a new jet for years. Any new single-aisle jet doesn’t have to replace the MAX per se. It is likely to be a little larger than a 737 MAX, possibly sized between a 757 and 767 jet, capable of carrying anywhere from 200 to 250 passengers.

A 737 MAX can carry roughly 170 to 230 passengers, depending on the model and configuration. An Airbus A321neo can carry roughly 180 to 240 passengers.

The A321neo program was announced in 2010. The MAX program came in 2011. Both planes entered service in 2017.

Over time, the A320neo and A321neo jets have outperformed the 737 MAX. Airbus has taken more than 11,000 orders for the jet, including planes already delivered. The comparable number for the MAX is closer to 8,600. The difference might seem small, with the MAX capturing more than 40% of the orders, but more market share for either commercial airplane maker can mean more cash flow and better products down the road.

Boeing might have acted sooner on a new jet if not for problems with the MAX, which included two deadly crashes in 2018 and 2019. Management and multiple CEOs have been focused on fixing MAX design and production and putting Boeing back on a more solid financial footing. (Boeing hasn’t reported a full-year profit since 2018.)

Current CEO Kelly Ortberg has addressed the possibility of a new plane many times in the past. “I look at that really kind of in three work streams. One is when is the market ready? And two, when are we ready both financially and from a capacity perspective? And third is, when is the technology ready?” he said in May, adding that none of the three factors were ready yet.

New technology often means a new engine, designed to improve fuel efficiency and drive down costs. The Wall Street Journal added that Boeing has held discussions with Rolls-Royce. Investors can expect other engine makers, including GE Aerospace , Safran, and RTX , to enter the fray.

Rolls shares gained 2.3% in overseas trading, while Safran stock rose by 1.5%. In the U.S., shares of RTX gained 2.3%, while GE Aerospace advanced 2.5%.

Shares of Boeing, Airbus, and the engine makers are likely to be volatile over the coming days while investors sort things out.

Write to Al Root at allen.root@dowjones.com