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Boeing (NYSE:BA) is in hot water again, with its stock tumbling as much as nearly 6% on early trading Monday after a Jeju Air 737-800 crash in South Korea killed 179 of 181 passengers. South Korea wasted no time, ordering a sweeping inspection of all 737-800 planes operated domestically. The model, known for its solid safety record, is now under the microscope for possible landing gear failures and a reported bird strike. Investors, still skittish from Boeing's 737 Max fiasco, are questioning if the company can shake off this latest crisis or if it's just more fuel on the fire.
Here's why this matters: Boeing was just starting to claw its way out of a rough year, with shares down 34% year-to-date. Despite a recent rebound, the stock still trades 60% below its 2019 highs. The 737-800's reliability has never been in doubtuntil now. Analysts note the model's long track record, but the timing of this crash, coupled with fresh reports of another Jeju Air plane experiencing landing gear issues, has raised eyebrows. South Korea's acting president has ordered a full audit of domestic airline operations, and Boeing is in the thick of it.
For investors, this is a tough call. Boeing has been inching toward recovery, but the company can't afford more missteps. With regulatory probes heating up and reputational damage piling on, the road ahead looks rocky. Still, for the long-term believer, this could be a buying opportunityif Boeing can stabilize and deliver on its promises. Until then, all eyes are on the investigations, which will determine whether this crash was an isolated incident or the start of another nightmare for the aerospace giant.
This article first appeared on GuruFocus.