March 13, 2026 — Renton, Washington Boeing halted 737 MAX deliveries from March 5 to 11 after discovering small scratches on wiring bundles in undelivered aircraft, a machining error during production that triggered a 3.26% plunge in shares on March 11.
The defect, identified through routine checks, affects a group of newly built but undelivered 737 MAX jets. Boeing paused ticketing and deliveries while assessing scope and performing rework, expected to take several days per plane.
The Wiring Defect
Small scratches or chafing on electrical wiring bundles stemmed from a machining error at Boeing’s own facility, not a supplier. The issue does not impact the safety of thousands of in-service 737 MAX planes, which can continue operating normally. Boeing informed the FAA and customers.
“We paused ticketing and deliveries as we work through this issue,” said 737 program VP and general manager Katie Ringgold.
“There is going to be disruption [for] the next few days. It will take several days to resolve, not weeks,” she added.
Boeing’s Response and Outlook
“Our B737 program is performing rework on a group of airplanes to fix wires that have small scratches due to a machining error,” Boeing stated.
The company anticipates near-term delays affecting first-quarter 2026 deliveries, particularly in March, but reaffirmed its full-year target of at least 500 aircraft. Production rates of 42-47 planes per month remain unchanged. CEO Kelly Ortberg emphasized “quality over speed.”
February saw 43 deliveries, with only three in early March before the halt.
Market Reaction
Boeing shares (BA) dropped 3.26% on March 11, one of the Dow’s biggest losers, amid concerns over the latest production hiccup.
Impact on Airlines
The pause affects US carriers like Southwest Airlines, the largest MAX operator, United, and American, amid surging early 2026 orders. No flight operations are disrupted. Boeing 737 MAX orders skyrocketing among US airlines in early 2026.
