Boeing Selected by Pentagon and U.S. Navy for Sixth-Generation F/A-XX Fighter Jet Contract

Aircraft manufacturer Boeing has been selected by the Pentagon and U.S. Navy to develop the next generation of fighter jets.

The contract, worth more than $20 billion, is to build its Sixth-Generation F/A-XX Strike Fighter over a long-term phase, the defense departments said. The F/A-XX is intended to replace the service's fleet of F/A-18 Super Hornets.

The fighter will advance open mission systems architecture, advanced mission systems, and operational reach and capacity, Boeing said in a separate statement. The stock closed 1.8% higher at the end of the trading day on Tuesday.

"The F/A-XX is a critical pillar in our commitment to maintaining peace through strength. F/A-XX will dominate contested airspace, extend operational reach, and deliver a decisive combat advantage for the warfighter," said Michael P. Duffey, Under Secretary of War for acquisition and sustainment.

It marks the company's second prestigious sixth-generation jet contract in a year after the Air Force selected it to develop its F-47 fighter in 2025.

Elsewhere, Boeing recently flagged a software glitch in some of its 737 Max 10 aircraft that could impact certain landing procedures, which led the Federal Aviation Administration on Monday to delay its certification of the aircraft.

"We haven't concluded whether this is a safety-of-flight issue or not, but we will be delaying the 10 ... until we're satisfied that we don't have an issue here," FAA Administrator Bryan Bedford said at a press conference on air traffic modernization in Washington, D.C., on Monday.