FAA Reauthorization Bill Exempts Boeing 767 From 2028 Production Cutoff

Waiver from international fuel efficiency standards preserves FedEx, UPS access to preferred aircraft model.

Wednesday, May 15, 2024 at 04:33 PM ET

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A UPS Boeing 767-300 waits for its next trip at Dallas-Fort Worth International Airport. The express carrier operates 88 of the aircraft type. [Jim Allen/FreightWaves]

Key Takeaways:

The U.S. House approved an FAA reauthorization bill granting Boeing a five-year extension (until 2033) to produce 767 freighters for FedEx and UPS, exempting them from international cleaner engine standards taking effect in 2028.
This waiver provides a critical "bridge" for express carriers to secure needed capacity, as Boeing works to develop a new 787 freighter as a replacement, expected to be available in 8-10 years.
Lobbied for by Boeing, FedEx, and UPS, the exemption allows continued production of the cost-effective 767F, despite potential limitations for post-2027 models to primarily domestic U.S. operations.

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The FAA reauthorization bill approved Wednesday by the U.S. House of Representatives includes language allowing Boeing an extra five years to produce 767 freighters for FedEx and UPS beyond the date when international standards mandating cleaner engine types kick in.

The bill gives Boeing (NYSE: BA) a bridge, in case the express carriers need extra capacity, until it can develop a new freighter next decade. Multiple industry sources familiar with the process said FedEx (NYSE: FDX) and UPS (NYSE: UPS) joined Boeing in lobbying Congress for a reprieve from the January 1, 2028, production deadline. The legislation previously passed the Senate and will be sent to President Joe Biden to sign into law.