Boeing Co. said a wiring flaw found on its 737 Max will delay some deliveries of its cashcow narrowbody jet, sending shares down as much as 3% in US trading.
The US planemaker said its overall delivery target of roughly 500 planes for the year remains unchanged despite the quality lapse, disclosed on Tuesday as Boeing reported monthly orders and deliveries.
“Our 737 program is performing rework on a group of airplanes to fix wires that have small scratches due to a machining error,” Boeing said in a statement. “This ensures they meet our quality standards before the airplanes are delivered.”
Production of new 737 MAX airplanes continues at the existing rate, Boeing said.
The company said it expects fixes to the scratches in the wiring of some undelivered planes will be completed in a matter of days. Boeing fell 0.4% to $224.15 as of 11:20 a.m. New York time.
Boeing delivered 51 commercial planes in February, the most for that month since 2017, outpacing rival Airbus SE and providing another indication the US company is maintaining momentum in its turnaround.
The monthly total included 43 of its 737 Max jets and three of the 787 Dreamliners. Three 767 planes and two 777 freighters rounded out the total, the company said.
Boeing recorded 21 gross aircraft orders for the month versus six cancellations. Net orders for the month totaled six when including an accounting provision for at-risk deals.
An unidentified party placed an order for six 767s for the KC-46 tanker program. Boeing didn't identify the customer but deferred to the US Department of Defense and the US Air Force for further explanation.
The total order backlog with the accounting adjustment fell to 6,151 from 6,196.
Airbus delivered 35 planes during the same period.
Boeing is nearing one of the largest sales in its history: a 500-aircraft order for 737 Max jets set to be announced when US President Donald Trump travels to Beijing later this month. An agreement on the single-aisle planes hasn't been finalized, Bloomberg reported last week.
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