The Federal Aviation Administration has announced that Boeing Co (NYSE:BA) can resume delivery of its 787 Dreamliner after delivery had been halted for two years due to manufacturing flaws, CNBC reported.
The suspension impacted United Airlines Holdings Inc (NASDAQ:UAL) and American Airlines Group Inc (NASDAQ:AAL) the most as the companies had been awaiting delivery while travel surged.
The 787 Dreamliner is a key source of cash for Boeing because the bulk of the aircraft's price is paid when it is delivered to airlines. Due to delivery delays, Boeing had to compensate airlines for the extensive delays caused by the halt.
Boeing previously said that 787 Dreamline issues would cost the company $5.5 Billion.
On Monday the FAA shared "Boeing has made the necessary changes to ensure that the 787 Dreamliner meets all certification standards … The FAA will inspect each aircraft before an airworthiness certificate is issued and cleared for delivery."
Last month, Boeing CEO David Calhoun shared that the company was near the completion of the 787 Dreamliner revamp calling it "the moment we've been waiting for." The company said it had 120 of the planes in inventory at the end of last quarter.
American Airlines CFO Derek Kerr estimated last month that American Airlines would receive a 787 Dreamliner from Boeing in early August. If that timeline remains on schedule, the airline will be the first or among the first, to receive a plane.
On Aug. 4, FAA acting Administrator Billy Nolen visited the factory and met with FAA safety inspectors about steps to improve the production quality of the 787 Dreamliner.
"We continue to work transparently with the FAA and our customers towards resuming 787 deliveries," Boeing said in a statement.
BA Price Action: Boeing shares are up 0.67% as the price is at $166.14 on Monday afternoon, according to Benzinga Pro.
Photo: 787 Dreamliner, courtesy of Boeing