Market Minute: Boeing (BA) – Shares Hit on Air India Crash

Boeing (BA) shares are down over 7% this morning after tragedy struck when Air India Flight AI171, a Boeing 787-8 Dreamliner, crashed shortly after takeoff from Ahmedabad, India, en route to London’s Gatwick Airport. 

The incident marked the first-ever crash of a Boeing 787 Dreamliner, a model previously lauded for its safety record. This catastrophic event has reignited concerns about Boeing’s safety and quality standards, sending its stock tumbling.

Flight AI171 departed from the International Airport in Ahmedabad, carrying 230 passengers and 12 crew members, including 169 Indian nationals, 53 Britons, seven Portuguese, and one Canadian. Just five minutes after takeoff, the Boeing 787-8 Dreamliner issued a Mayday call before losing contact with air traffic control. The aircraft plummeted into a residential area, sparking a massive fireball fueled by the plane’s heavy load of fuel. The cause of the crash remains unknown and Indian authorities have launched an investigation. Preliminary flight-path data from Flightradar24 indicates the plane did not appear to be in distress before it crashed.

This crash is particularly significant as it is the first total hull loss of a Boeing 787 Dreamliner, a widebody, twin-engine jet that entered commercial service in 2011 and has flown over a billion passengers without a fatal incident until now.

Boeing shares had been on a bullish trajectory as of late with the stock up nearly 21% as of yesterday’s close. The stock had rallied 66% off of April lows and investors were looking forward to potential new orders at next week’s Paris Airshow. Boeing is heading into the Paris Air Show booking 303 new orders in May and rolling out 38 new 737 MAX jets, while it delivered 45 aircraft last month, according to Reuters. 

Shares of Boeing suppliers GE Aerospace (GE) and Spirit AeroSystems (SPR) are moving lower after the incident. Boeing and GE Aerospace will put together a team to go to India and analyze the cockpit data of the Boeing (BA) 787 Dreamliner aircraft that crashed.