Boeing (BA) said a wiring defect on some 737 Max aircraft will delay a portion of deliveries, though the company expects to meet its full-year delivery goal for the narrowbody jet.
The issue involves minor scratches on wiring caused by a machining error, according to the company. Boeing (BA) said the affected aircraft are undergoing rework before delivery to ensure they meet quality standards.
The company didn’t disclose how many planes are affected but said the repairs should take only a few days. Production of new 737 Max aircraft continues at the current pace.
The disclosure came as Boeing (BA) released its monthly orders and deliveries. Shares slipped modestly in U.S. trading after the announcement.
Analysts said the wiring problem could create a short-term headwind for first-quarter results, though it is unlikely to derail Boeing’s (BA) broader recovery.
Boeing (BA) delivered 51 commercial aircraft in February, the strongest result for the month since 2017 and ahead of deliveries by rival Airbus.
The 737 program remains central to Boeing’s (BA) financial turnaround and debt reduction efforts, much as Airbus relies on its competing A320 family.
For February, Boeing (BA) reported 21 gross aircraft orders and six cancellations, leaving six net orders after adjustments for deals considered at risk. Orders included 43 737 Max jets, three 787 Dreamliners, three 767 aircraft and two 777 freighters.
The company also logged an order for six 767 aircraft tied to the KC-46 tanker program for the U.S. military, though Boeing did not identify the buyer.
Boeing’s (BA) order backlog slipped slightly to 6,151 aircraft.
Separately, the manufacturer is said to be nearing a major potential sale of about 500 737 Max jets that could be announced during a planned visit by Donald Trump to Beijing later this month, though the agreement hasn’t yet been finalized, Bloomberg News reported.