Boeing Wins Long-Awaited Max 10 Approval as Fuel Bill Squeezes United

Boeing Co. secured US approval on Tuesday for the largest version of its 737 Max. On the same day, United Airlines Holdings Inc. showed how soaring jet fuel costs are eroding profits despite record demand.

The Federal Aviation Administration certified the 737 Max 10 after years of delays, clearing the way for deliveries that Boeing expects to begin in the coming months. The jet seats up to 230 passengers. It is the first commercial aircraft certified under the full requirements of the 2020 aviation safety law passed after the two fatal Max crashes, and it includes an enhanced angle-of-attack system.

Airlines have ordered 1,555 of the planes, more than 30% of Boeing’s outstanding Max orders. Shortly before certification, the FAA ruled that a navigation-software glitch was not a safety concern. “We will continue to hold Boeing to the highest safety standards as the company begins production of the 737 MAX-10,” FAA Administrator Bryan Bedford said.

Hours later, United reported record third-quarter revenue of $17.9 billion, up 17% from a year earlier, driven by premium, loyalty and cargo sales. The cost of flying rose just as sharply. The carrier paid an average of 3.90 dollars a gallon for fuel, up 60%, adding about 1.8 billion dollars to its bill.

Adjusted earnings of $2.54 a share fell short of the analyst consensus of 2.59 dollars, and the shares slipped about 2% in late trading. United expects fourth-quarter revenue to grow more than 20%, but forecast adjusted earnings of just 50 cents to 1.50 dollars a share. That outlook assumes fuel at about 4.80 dollars a gallon.

Chief Executive Officer Scott Kirby struck an upbeat tone, saying the results “prove the resilience of focusing on building a brand-loyal airline for customers.”