COPENHAGEN, DENMARK – 2024/05/22: An Air India Boeing 787-8 Dreamliner landing at Copenhagen Kastrup … More
Boeing’s stock tumbled 6% in extended trading following news of a tragic crash involving one of its 787 Dreamliner aircraft. The Air India flight, carrying 242 passengers and crew members, crashed shortly after takeoff from Ahmedabad, India, en route to London Gatwick.
A Pattern of Setbacks
This latest incident adds to Boeing’s mounting challenges over the past year. The aerospace giant has been grappling with a series of safety concerns that have damaged its reputation and operational capacity.
The company’s troubles began escalating with a dramatic midair incident on January 9, 2024, when a cabin side panel detached from an Alaska Airlines Boeing 737 Max 9 during Flight 1282. The Federal Aviation Administration responded swiftly, halting Boeing’s production expansion plans for the 737 Max aircraft line. Additional problems emerged in February when one of Boeing’s suppliers discovered defects in fuselages on several unfinished 737 Max planes. These issues compounded existing concerns. Look at – What’s In Store For Boeing Stock In 2025? – for more details on Boeing’s issues. Separately, see – Buy Oracle Stock At $190?
Recovery Efforts and Market Impact
Despite these setbacks, Boeing has implemented corrective measures to address the 737 Max issues and has worked to increase production capacity. While the cause of the latest 787 Dreamliner crash remains unknown, the incident casts fresh doubt on the company’s safety record.
The aviation industry has already shown signs of shifting preference toward Boeing’s European rival, Airbus. This latest major incident threatens to accelerate that trend, as airlines may further reassess their fleet procurement strategies in favor of alternative manufacturers. For perspective, Transavia Airlines is continuing its gradual transition from an all-Boeing fleet to an all-Airbus fleet, with Boeing 737-700 and -800 aircraft being gradually phased out as it introduces larger A320neo family aircraft. Similarly, the British low-cost carrier – easyJet – has completely switched from 737s to A320s, having previously operated 84 Boeing 737s, all of which have been retired. Also, United Airlines has signed at least 36 leases for the A321neo, the Airbus model that competes with Boeing’s 737 Max 10, though this was due to Boeing delivery delays rather than safety concerns.
The crash represents a critical moment for Boeing as it struggles to rebuild confidence among regulators, airlines, and passengers while managing the financial and operational impacts of its ongoing safety challenges. Also, check out – How Low Can Boeing Stock Fall In A Market Crash?
