WestJet First Flagged Boeing 737 MAX Software Glitch Cleared by FAA, Memo Says

WestJet pilots were the first to alert Boeing about a software anomaly affecting the 737 MAX, according to a memo to pilots reviewed by Reuters, nearly two years before the U.S. Federal Aviation Administration concluded that the issue does not pose a safety risk.

The Canadian airline identified the anomaly during an entry-into-service validation flight in 2024 and provided Boeing with supporting data. The FAA subsequently conducted a Corrective Action Review Board and determined that the software problem did not create a safety threat.

The development provides important context to a software issue that recently delayed certification of Boeing's long-awaited 737 MAX 10. While the FAA's latest conclusion removes a significant regulatory concern, Boeing still needs to implement a software update and work through the certification process.

What did WestJet discover on the Boeing 737 MAX?

WestJet pilots encountered the anomaly during a 2024 validation flight designed to assess the aircraft before it entered service.

According to the memo seen by Reuters, WestJet became the first airline to report the issue to Boeing and supplied supporting information to the planemaker. The problem involved flight-computer software and automated vertical navigation under a particular landing scenario.

The issue later became significant enough to trigger additional scrutiny as Boeing prepared its newer MAX variants for certification.

Importantly, the FAA's review concluded that the software glitch does not pose a safety risk. The agency said pilots retain control of the aircraft and receive clear cockpit indications, meaning the issue does not result in a loss of pilot control.

That distinction matters for investors. A software anomaly in a flight-control or navigation system can sound severe, but the regulatory assessment indicates that the particular problem identified here does not create an unacceptable safety condition.

Why did the issue become a problem for Boeing now?

The software issue became a much larger business concern because it surfaced while Boeing was working toward certification of the 737 MAX 10.

The MAX 10 is the largest version of the 737 MAX family and has faced a lengthy certification process. On September 28, the FAA said it would delay certification while the newly disclosed software issue was reviewed. Boeing shares fell sharply that day as investors reacted to another potential setback for the aircraft program.

The FAA's subsequent safety finding changes that situation.

The regulator's Corrective Action Review Board determined that the software issue does not pose a safety risk. Boeing is continuing to work on a software update and interim procedures for pilots, while the FAA plans to issue a Special Airworthiness Information Bulletin to keep operators informed.

The decision could therefore help restore the certification timetable for the MAX 10, although certification itself remains a regulatory process rather than an automatic consequence of the safety finding.

What does the FAA decision mean for Boeing?

For Boeing, the FAA conclusion removes one major obstacle from the MAX 10 certification process.

The company has been trying to bring the aircraft to market after years of delays. The MAX 10 is important because airlines have placed substantial orders for the model, creating a significant future delivery opportunity for Boeing.

Reuters reported that Boeing has roughly 1,500 MAX 10 orders, with airlines including Southwest, United and Alaska among customers. The FAA's finding allows the certification process to move forward with the software issue no longer classified as a safety risk.

That is relevant to Boeing's broader recovery because aircraft deliveries generate revenue and cash flow, while certification delays can push deliveries and associated payments further into the future.

Still, investors should not interpret the FAA decision as a complete resolution of Boeing's wider operational challenges. The company continues to face intense regulatory oversight and pressure to improve production quality.

The timing is particularly important after the MAX 7 approval

The FAA certified Boeing's 737 MAX 7 in August 2026 after an extensive review.

The agency said that approval followed years of work involving flight controls, system safety assessments, human factors, crew alerting and other complex areas. The MAX 7 also incorporated changes to flight-control software and cockpit alerting systems.

The certification demonstrated that Boeing could advance the MAX program under the FAA's more rigorous post-crisis oversight framework.

However, the later software issue showed why regulators remain cautious when evaluating additional variants.

The FAA had also only recently restored Boeing's ability to issue airworthiness certificates for new 737 MAX and 787 aircraft after months of reviewing production quality. In July, the agency said its decision followed eight months of data showing consistent production quality.

For Boeing, therefore, the latest FAA finding is helpful but comes within a broader effort to rebuild regulatory confidence.

What does the WestJet disclosure tell investors?

The fact that WestJet identified the anomaly in 2024 is significant because it shows that the problem was not discovered only after an in-service accident or loss of aircraft control.

Instead, the issue was detected during an entry-into-service validation flight and reported to Boeing with supporting data. The FAA later reviewed the issue and concluded that it did not represent a safety risk.

That timeline is relevant when assessing the difference between technical defects and safety-critical failures.

Aircraft software is extremely complex, and not every software anomaly represents an immediate threat to passengers. Regulators evaluate how a problem manifests, whether pilots can recognize it, whether they retain control and whether existing procedures adequately manage the situation.

In this case, the FAA's review found those safeguards sufficient.

What investors should watch next

The next major issue is whether Boeing can translate the FAA's safety finding into progress toward 737 MAX 10 certification.

Reuters reported that certification could come as early as later in October, although the precise timing remains dependent on the regulatory process.

Investors should monitor four areas.

MAX 10 certification: A formal certification would remove an important uncertainty surrounding Boeing's largest 737 MAX variant.

Software update: Boeing still needs to develop and implement the appropriate software changes and interim procedures associated with the issue.

737 MAX deliveries: Certification is valuable commercially only if Boeing can convert its order backlog into aircraft deliveries at an improving production rate.

Regulatory oversight: The FAA continues to monitor Boeing's manufacturing and safety systems closely. Its July decision to return airworthiness-certificate authority to Boeing was explicitly linked to sustained production-quality data and continued FAA oversight.

What this means for Boeing stock

The FAA's conclusion is generally relevant to Boeing's investment story because certification delays can affect the timing of aircraft deliveries, while regulatory clearance can reduce uncertainty around future production.

However, investors should separate the immediate market reaction from the company's longer-term financial performance.

The software issue itself has now been judged by the FAA not to pose a safety risk. That reduces one source of uncertainty, but Boeing's stock will still depend on a much wider set of factors, including production rates, aircraft deliveries, cash flow, order activity, supplier performance and the company's ability to maintain quality standards.

The MAX 10 certification milestone will therefore be more important than the software headline alone.

Bottom line

WestJet first identified and reported the Boeing 737 MAX software anomaly during a 2024 validation flight, according to a pilot memo reviewed by Reuters. Nearly two years later, the FAA's Corrective Action Review Board concluded that the issue does not pose a safety risk.

The decision removes a significant regulatory concern that had delayed the MAX 10 certification process. For Boeing investors, the key developments to watch now are the timing of MAX 10 certification, implementation of the software update and whether Boeing can sustain improvements in production and deliveries.

Follow the blog for more aviation, business, technology and global market updates.

This article is for informational and educational purposes only and should not be considered investment advice.