Boeing shares tumble after Air India Dreamliner crash
Boeing’s shares fell by as much as 8% in early trading on Thursday following the crash of an Air India Boeing 787-8 Dreamliner minutes after take-off – a major blow to the company as it struggles to restore confidence amid ongoing safety and production challenges.
All 242 people on board the London-bound flight were killed when the aircraft crashed shortly after departing from Ahmedabad airport in western India, authorities confirmed. The incident marks the world’s deadliest aviation disaster in a decade.
The cause of the crash remains unclear. Boeing said in a statement that it was aware of the initial reports and was working to gather more information. This is the first fatal crash involving the 787 Dreamliner since its introduction into service.
The accident casts a shadow over the Dreamliner’s previously strong safety record and disrupts CEO Kelly Ortberg’s efforts to ramp up production and rebuild trust. Earlier this month, Boeing had announced a string of new orders and met production targets ahead of the Paris Air Show.
The 787 Dreamliner, one of the most technologically advanced commercial aircraft in operation, was previously grounded in 2013 due to battery-related issues, though no injuries were reported in those incidents.
Boeing has faced years of scrutiny over its narrowbody 737 MAX jets, which were grounded globally following two deadly crashes in 2018 and 2019.
Last year, the company faced renewed criticism after a door plug blew off a 737 MAX 9 mid-flight, prompting a temporary grounding by the Federal Aviation Administration (FAA) and fresh concerns about quality control.
Shares of key suppliers also took a hit. Spirit AeroSystems (SPR.N), a major Boeing supplier, and GE Aerospace (GE.N), which manufactures engines for some Boeing aircraft, both fell around 3%.
GE Aerospace activated its emergency response team following the crash and said it would support the investigation. It did not confirm whether the Air India jet was powered by GE engines. The company did not immediately respond to a Reuters request for comment.
At market open, Boeing shares were trading at $196.75, down nearly 5% in regular trading after falling as much as 8% in pre-market activity.
