Boeing says wiring flaws could delay first-quarter 737 MAX jet deliveries

By Nathan Gomes and Dan Catchpole

SEATTLE, March 10 (Reuters) - Boeing BA.N on Tuesday said first-quarter deliveries of its narrow-body 737 MAX jets could face delays due to wiring flaws, the latest hiccup for the troubled planemaker as CEO Kelly Ortberg looks to improve production quality and the company's reputation.

"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, adding that production of its new MAX jets continues at the existing rate of 42 jets a month.

Boeing shares were off nearly 1% in afternoon trading on Tuesday.

The company said it plans to increase the rate to 47 jets a month later this year and is opening a fourth 737 assembly line at its Everett, Washington plant this summer. The company wants to get to 63 737 jets a month in the next few years.

Boeing did not specify if the scratches on the wires were caused by a supplier or the company. The company said it has informed the Federal Aviation Administration and customers. The FAA could not immediately comment.

The planemaker said all in-service 737 MAX airplanes can continue to operate safely and that it did not expect the issue to affect the company's goal to deliver about 500 737 jets this year.

The announcement comes after company said on Tuesday it had delivered 51 jets in February - the highest total for the month since 2018 and an increase from 46 in January. Deliveries in February included 43 737 MAX jets.