Key Stats for Boeing Stock
- Yesterday’s Price Change: -5%
- Current Share Price: $196
- 52-Week High: $219
- BA Stock Price Target: $217
What Happened?
Boeing (BA) stock fell approximately 5% on Thursday following news of a fatal crash involving one of its 787 Dreamliner aircraft in western India.
An Air India passenger plane carrying 242 passengers and crew members crashed into a medical college in Ahmedabad, Gujarat, marking the first fatal crash involving a Dreamliner since the model’s introduction in 2011.
The aircraft, delivered to Air India in January 2014, had accumulated more than 41,000 flight hours and nearly 8,000 takeoffs and landings over its operational life.
While investigations are still in early stages and it could take months or years to determine the cause, the incident has renewed scrutiny of Boeing’s safety record amid its ongoing quality crisis.
Boeing CEO Kelly Ortberg expressed condolences and said the company had a team ready to assist with the investigation led by India’s aviation regulators.
The crash comes at a challenging time for Boeing, which has been grappling with multiple safety issues, quality control problems, and financial difficulties over the past few years.
This incident follows Boeing’s troubled history with the 737 Max, which was grounded worldwide for 18 months after two fatal crashes in 2018 and 2019 that killed 346 people.
The aircraft manufacturer has also been involved in other safety incidents, including a door panel blowing out on an Alaska Airlines 737 Max 9 flight in January 2024, which exposed passengers to forceful winds.
See Boeing’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
What the Market Is Telling Us About Boeing Stock
The 5% decline in BA stock reflects investor concern that Boeing’s reputation may be further damaged, even though manufacturing defects may ultimately have little to do with the cause of the crash.
The market reaction demonstrates how sensitive Boeing’s stock has become to any aviation incident, given the company’s recent history of safety and quality issues.
Boeing’s financial position remains precarious, with the company losing nearly a billion dollars per month last year due to safety crises, quality control issues, and a damaging seven-week workers’ strike.
Boeing has faced significant financial penalties, including $160 million in compensation for the Alaska Airlines door incident and a $428 million settlement with Southwest Airlines related to the grounding of the 737 Max.
While the 787 Dreamliner previously had an exemplary safety record and has carried over one billion passengers since its launch 14 years ago, today’s crash marks the first fatal incident for the model.
Boeing has faced ongoing concerns about the quality of Dreamliner production, including delivery pauses and whistleblower allegations of manufacturing shortcuts, although the company has disputed these claims.
The market appears to be pricing in continued reputational risk and potential regulatory scrutiny that could further delay Boeing’s recovery efforts.
Under CEO Kelly Ortberg, who returned to the company last year to lead its turnaround, Boeing has promised improvements to its safety culture and recently expressed confidence in returning to profitability.
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Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
