Boeing Stock Rises as FAA Clears Fuel Switches in Air India Crash Inquiry

Boeing's stock (NYSE:BA) gained as the fuel control switches, a potential cause of the Air India crash, passed safety checks with the FAA. The 777X line is also nearing certification and EIS approval, bringing it closer to production and wider use. Analysts have a Strong Buy consensus rating on BA stock with a 26.65% rally in its share price over the past year.

Boeing's stock (NYSE:BA) experienced a rally on July 2, 2025, as the Federal Aviation Administration (FAA) cleared fuel control switches as a potential cause of the Air India crash. The 777X line is also nearing certification and Environmental Impact Statement (EIS) approval, bringing it closer to production and wider use. Analysts maintain a Strong Buy consensus rating on BA stock, with a 26.65% increase in share price over the past year.

The FAA, in a Continued Airworthiness Notification issued on July 11, stated that the fuel control switch design, including the locking feature, does not present an unsafe condition warranting an Airworthiness Directive [1]. This notification followed a preliminary report by India's Aircraft Accident Investigation Bureau (AAIB) on the Air India 787-8 crash, which raised questions about the fuel cutoff switches.

The FAA's notification said, "although the fuel control switch design, including the locking feature, is similar on various Boeing airplane models, the FAA does not consider this issue to be an unsafe condition that would warrant an Airworthiness Directive on any Boeing airplane models, including the Model 787" [1]. Boeing echoed this stance in a Multi-Operator-Message sent to airlines, stating that no additional action is recommended [2].

The AAIB's preliminary report suggested that the fuel switches might have been accidentally activated, leading to engine failure. However, it also noted that Air India had not carried out the FAA's recommended inspections, as the 2018 advisory was not mandatory. Maintenance records showed the throttle control module, which includes the fuel switches, was replaced in 2019 and 2023 [2].

The Indian pilots' association, ALPA India, has called for a fair, fact-based inquiry into the crash, disputing the presumption of pilot error and seeking inclusion in the probe [1]. Flight data revealed that both engine fuel switches moved from ‘RUN’ to ‘CUTOFF’ within one second of each other, cutting off thrust to the engines [2].

The 777X line is expected to enter production soon, following its nearing certification and EIS approval. The 777X is Boeing's latest wide-body aircraft, designed to compete with the Airbus A350 and the Boeing 787. The 777X's advanced technology and fuel efficiency are expected to drive demand and boost Boeing's market share.

References:
[1] https://www.usatoday.com/story/travel/airline-news/2025/07/14/boeing-faa-air-india-crash-fuel-switch-safety/85191297007/
[2] https://timesofindia.indiatimes.com/business/india-business/air-india-crash-us-faa-boeing-says-fuel-switch-locks-safe-probe-report-raised-questions-on-engine-cutoff/articleshow/122428206.cms