Boeing stock slumps 4% after deadly Air India plane crash
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Boeing (BA) stock sank more than 4% on Thursday after an Air India plane carrying 242 people crashed shortly after takeoff near the Ahmedabad airport.
The plane involved was a Boeing 787-8 Dreamliner, delivered to Air India in 2014, according to aviation tracking site FlightRadar24. The flight was heading to Gatwick Airport in London.
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Air India said that of the 242 aboard, there are 241 confirmed fatalities. The sole survivor was being treated in a hospital.
"Our deepest condolences go out to the loved ones of the passengers and crew on board Air India Flight 171, as well as everyone affected in Ahmedabad," Boeing CEO Kelly Ortberg said in a statement.
Kelly said a "Boeing team stands ready to support the investigation led by India’s Aircraft Accident Investigation Bureau.”
This is the first deadly crash involving a Boeing 787 Dreamliner since its introduction in 2011, according to a company report of airplane accidents.
(BA)
The crash is a major setback for the aerospace giant, which has been racking up plane orders under Ortberg's leadership. Shares had been up over 20% this year on the heels of a massive company turnaround following a brutal 2024 sparked by a "door plug" incident on an Alaska Airlines (ALK) flight.
That event triggered a wave of lawsuits, government investigations, and safety and production changes, ultimately leading to a leadership overhaul.
Boeing also came under intense scrutiny in 2019 following the deadly crash of Ethiopian Airlines flight 302. That incident followed a Lion Air flight crash just five months earlier.
Both of those crashes exposed critical flaws in the 737 Max 8 jet's software, leading to a 20-month global grounding of the aircraft.
Edward Jones analysts on Thursday noted that regulatory scrutiny may result in a delay of aircraft deliveries and, therefore, less cash generation for the company. The analysts have a Hold rating on the stock.
"While a delay in deliveries is possible, Boeing maintains a strong order book, and we think significant cancellations of orders is unlikely given the lengthy wait times at Boeing's primary competitor," Edward Jones senior industrials analyst Jeff Windau wrote.
Shares of Boeing suppliers also lost ground on Thursday. GE Aerospace (GE) fell over 2%. Spirit AeroSystems (SPR) declined more than 2%.
Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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