The March 881 used the Judd CV V8 engine, which entered Formula One competition in 1988 alongside Williams, Lotus, and other teams abandoning turbo power ahead of the 1989 rule change. While the Judd unit was comparable to other naturally aspirated engines of the period, Newey's aerodynamic design allowed the 881 to achieve exceptional straight-line speed. Capelli's car was repeatedly clocked as the fastest naturally aspirated machine at speed traps through the season, reaching 312 km/h (194 mph) on the opening straight at Hockenheim for the German Grand Prix — the highest trap speed of any non-turbo car in 1988.
Capelli and Gugelmin formed a cohesive pairing for March's strongest competitive campaign in years. The highlight of the season came at the Japanese Grand Prix at Suzuka, where Capelli briefly passed Alain Prost's McLaren-Honda to lead the race as the two cars crossed the start-finish line on lap 16. It was the first time since the 1983 season that a naturally aspirated car had led a Formula One Grand Prix, an achievement that underscored the quality of Newey's design.
The car's best finishing result was a second place taken by Capelli at the 1988 Portuguese Grand Prix. Capelli closed the season in seventh place in the Drivers' Championship with 17 points, while Gugelmin, in his debut Formula One year, impressed with 13th place and 5 points. March ended the Constructors' Championship in sixth place with 22 points — a significant result for an independent team reliant on a customer engine against the dominant McLaren-Honda combination.
The 881 was used at the opening two races of the 1989 season — the Brazilian and San Marino Grands Prix — because March's intended new car for that year, the CG891, was not completed in time for the Monaco Grand Prix. Gugelmin drove the 881 to third place at his home race in Brazil, finishing close behind Nigel Mansell's Ferrari and Alain Prost's McLaren-Honda. That result and the San Marino appearance would prove to be March's only points of 1989, as the CG891 proved both slower and unreliable once it was introduced.
The March 881 is remembered primarily as the car that launched Adrian Newey's Formula One design career. Newey would go on to become the most celebrated aerodynamicist in the sport's history, his later work at Williams, McLaren, and Red Bull producing multiple Constructors' and Drivers' Championships. The 881's straight-line performance and Capelli's charging drives, particularly the race lead at Suzuka, ensured the car a firm place in the story of the 1988 season and of naturally aspirated racing at a time when turbocharged cars still dominated the front of the grid.