Boeing shares plunge 5% after fatal Ahmedabad plane crash

Boeing’s stock witnessed a sharp decline on June 12 following the tragic crash of an Air India Dreamliner in Ahmedabad.

By the close of regular trading on the New York Stock Exchange, the company’s shares had dropped to $203.75, a fall of $10.25 or approximately 4.8%.

The decline came a day after the stock had already dipped to $214.00, marking a smaller drop of 0.85%.

However, investor reaction intensified on Wednesday as global media coverage of the crash, one of the deadliest aviation disasters in recent years,triggered widespread concern.

In pre-market trading earlier in the day, Boeing shares had nosedived by nearly 8%, underscoring market anxiety over the aircraft manufacturer's safety record and potential regulatory consequences.

The crash involved a Boeing 787-8 Dreamliner, a model previously known for its clean safety history, amplifying the market's reaction.

The incident marks the first-ever crash involving a Boeing 787 Dreamliner since the model’s inception.

Launched in 2009 and with over 1,000 units delivered globally, the widebody jet had maintained a perfect safety record until now.

Boeing responds

In a brief statement, Boeing acknowledged the developing situation and confirmed they are gathering all available details.

The crash challenges the Dreamliner’s previously unblemished safety record, potentially complicating CEO Kelly Orthberg’s production expansion plans just as the company secured major manufacturing targets and new deals ahead of the Paris Airshow.

Wider impact on Boeing’s safety reputation

This setback follows a series of crises for Boeing. In October 2018, a Lion Air Boeing 737 Max 8 crashed into the Java Sea, killing all 189 onboard.

That was followed by the March 2019 crash of an Ethiopian Airlines 737 Max 8 near Addis Ababa, which claimed 157 lives. Both incidents led to significant regulatory and financial consequences for Boeing.

The Ahmedabad crash

The Air India flight carried 242 passengers and crew. It crashed seconds after take-off, resulting in the loss of all but one person onboard.