Boeing Stock Plunges After Deadly 787 Crash
Boeing shares dropped over 6% on Thursday after a Boeing 787 crash in western India ended the stock’s rapid rise. The Air India Dreamliner went down shortly after takeoff from Ahmedabad, with 242 people onboard.
The aircraft was headed to London when it crashed near Sardar Vallabhbhai Patel International Airport. By mid-day trading, Boeing had lost nearly $10 billion in market value.
A Rally Broken by Tragedy
Until the crash, Boeing stock had soared nearly 70% in just two months. It had climbed from $129 in April to $217 by Wednesday—its highest level since January 2023.
This rally reflected a dramatic rebound in investor confidence, largely driven by strong order flows and a year of incident-free operations.
However, Thursday’s crash halted that momentum. The timing couldn’t be worse, as Boeing had been regaining trust after past safety scandals.
Strong Orders and Clean Record Fueled Growth
Investor optimism had grown steadily. Boeing had recorded no major mechanical failures in over a year, restoring faith in its safety standards.
Moreover, the aerospace giant had won huge orders in the Middle East. These included a $14.8 billion deal with Etihad and a massive $96 billion agreement with Qatar Airways for 210 jets.
Together, these contracts added $110.8 billion to Boeing’s order book—boosting its financial outlook and reputation.
Crash Renews Safety Fears
The Boeing 787 crash has cast a shadow over Boeing’s recent success. It threatens to undo progress made in public and investor trust.
Indian aviation authorities have begun investigating the cause of the accident. While no conclusions have been reached yet, the incident revives fears about Boeing’s aircraft reliability.
This tragedy strikes just as Boeing had begun showcasing improved safety systems and securing major international deals.
If the crash is linked to a design or manufacturing flaw, it could trigger global scrutiny once again.
Market Reacts Swiftly to Crisis
The market’s reaction was immediate and sharp. Investors feared potential fallout, not only in financial terms but also in reputation.
As Boeing faces renewed questions, its leadership will need to respond transparently and swiftly. Future stock performance may depend on how the company handles both the investigation and global perceptions.
For now, the Boeing 787 crash stands as a sobering reminder that even strong comebacks remain vulnerable to a single event.
