Boeing (BA) said scratched wiring in undelivered 737 MAX jets will slow some deliveries, extending quality control setbacks that have plagued the manufacturer. The wiring problems stem from a machining error and highlight Boeing’s ongoing struggle to meet production targets amid heightened regulatory scrutiny.
Key Takeaways
- Boeing discovers wiring scratches in undelivered 737 MAX aircraft
- Machining error causes production delays amid quality control issues
- Latest setback compounds Boeing’s manufacturing challenges this year
Manufacturing Quality Under Scrutiny
The wiring defects represent another manufacturing hiccup for Boeing as it works to restore confidence following multiple safety incidents. The company has faced production slowdowns throughout 2024, delivering only 83 commercial aircraft in the first quarter compared to 130 planes a year earlier 1.
Boeing confirmed it identified “nonconforming components” on three already delivered airplanes, leading to their grounding. “We will perform any necessary rework on airplanes in our production system to ensure they meet all requirements prior to delivery,” a Boeing representative said 2.
Regulatory Pressure Intensifies
The Federal Aviation Administration has maintained strict oversight of Boeing’s manufacturing processes following the January door plug incident on an Alaska Airlines 737 MAX. The agency paused Boeing’s requests to expand production until quality control issues are resolved 3.
Boeing’s new CEO Kelly Ortberg faces mounting pressure to address systemic quality problems that have persisted for years. The company more than tripled its operating loss to $1.4 billion in the second quarter amid steep drops in aircraft deliveries 2.
Historical Context of Delays
This latest wiring issue follows a pattern of manufacturing problems that have delayed 737 MAX deliveries. In 2022, Boeing CFO Brian West cited slowdowns in wiring connector supply as responsible for lower April deliveries, saying “We have one particular wiring connector that has us slowing things down” 4.
The 737 MAX program has faced multiple production challenges since returning to service, including fuselage drilling errors and junction box issues that have repeatedly disrupted the manufacturing timeline.
Market Impact and Analyst Outlook
Boeing shares have declined more than 33% year-to-date as production issues continue to impact financial performance. Bank of America analyst Ronald Epstein maintained a neutral rating with a $200 price target, implying potential 19% upside despite ongoing delivery uncertainties 2.
Most Wall Street analysts remain bullish on Boeing, with 17 analysts maintaining buy-equivalent ratings compared to 10 hold ratings and just two sell recommendations. However, the persistent quality issues raise questions about Boeing’s ability to meet delivery commitments to airline customers.
Production Recovery Timeline
Boeing previously pledged to slow 737 MAX production to under 38 aircraft per month to address safety issues, with plans to ramp production back up by year-end. The wiring defects could further complicate this timeline as the company works to implement comprehensive quality control measures.
Industry analysts note that Boeing’s path to pre-pandemic delivery levels will likely extend into 2025-2026, reflecting the time needed to resolve manufacturing quality issues and restore regulatory confidence.
Not investment advice. For informational purposes only.
References
1Sara Samora (April 10, 2024). “Boeing delivery orders sluggish amid FAA probe”. Manufacturing Dive. Retrieved March 10, 2026.
2Will Daniel (August 13, 2024). “Boeing discovered a new set of problems in its 737s, further slowing deliveries”. Fortune. Retrieved March 10, 2026.
3“Boeing says a new 737 Max flaw will slow airplane deliveries”. CNBC. Retrieved March 10, 2026.
4Michael Bruno (May 11, 2022). “Wiring Connector Hiccup Slowed Boeing 737 MAX Delivery, CFO Says”. Aviation Week Network. Retrieved March 10, 2026.