Earlier this month, Boeing's internal inspections discovered minor scratches on electrical wiring bundles in several 737 MAX aircraft fresh off the line and awaiting delivery. Electrical wiring controls avionics systems, sensors, and other critical flight systems. Chafed wiring can cause electrical shorts, intermittent faults, and long-term insulation degradation. However, Boeing stated that the damage did not present an immediate safety risk. The scratches were traced to a machining error during manufacturing, not a supplier defect.
As a result of the defect, deliveries of the 737 MAX were temporarily halted from March 5 to March 11 while Boeing investigated and began repairs. On March 10, Boeing publicly confirmed the issue in an official statement: "Our 737 program is performing rework on a group of airplanes to fix wires that have small scratches due to a machining error." The company also reassured the public: "All in-service 737 MAX airplanes can continue to safely operate."
On the same day, Boeing temporarily suspended delivery paperwork and handovers. 737 program Vice President Katie Ringgold added: "We paused ticketing and deliveries as we work through this issue… It will take several days to resolve, not weeks."
Boeing has not confirmed the exact number of affected aircraft publicly, but estimates suggest that up to 25 aircraft may require repairs, with each plane needing several days of rework before delivery. Boeing informed both the Federal Aviation Administration (FAA) and airline customers awaiting the aircraft. Affected carriers include United Airlines, American Airlines, and Southwest Airlines, with Southwest particularly impacted due to its heavy reliance on the MAX and prior adjustments to its fleet plan.
Despite these disruptions, Boeing still expects to deliver approximately 500 737 aircraft in 2026, with only short-term delays in Q1. Production has continued at a steady pace of around 42 aircraft per month, with plans to increase to 47 per month.
The public announcement, however, triggered a significant selloff in Boeing stock. Shares fell about 3% on March 10, with some reports noting a 3.2% decline that day, making Boeing one of the worst performers in the Dow. Over the following sessions, shares continued to drop roughly 7%.
Since then, Boeing stock has attempted to stabilize. Analysts note that the stock remains under pressure but is showing some resilience. As of today, Boeing shares are trading around $214.74, reflecting a modest rebound following the news.
