Boeing Stock Drops Amid Deadly South Korean Plane Crash

Boeing Stock Drops Amid Deadly South Korean Plane Crash

Key Points:

• Boeing shares fell 4% in premarket trading after a deadly crash involving a 737-800 operated by Jeju Air.
• The crash killed 179 people, marking South Korea's deadliest aviation disaster in nearly 30 years.
• Shares of Jeju Air closed down nearly 9%, hitting an all-time low.

Boeing (NYSE: BA) stock faced a 4% drop in premarket trading on Monday following a devastating crash involving one of its 737-800 aircraft. The Jeju Air flight, departing from Bangkok, Thailand, crashed during landing at Muan International Airport in South Korea on Sunday. The plane skidded off the runway, collided with a wall, and erupted in flames, resulting in 179 fatalities out of 181 people on board.

The two survivors, both crew members, are receiving medical care. This incident is South Korea's most severe aviation disaster in nearly three decades. Jeju Air, a budget airline established in 2005, saw its stock plunge over 8% on Monday, closing at a record low on the Korea Exchange.

Footage aired by local media revealed the aircraft landing without its landing gear deployed before it struck airport infrastructure and caught fire.

South Korea’s transport ministry has launched an investigation, with support from the U.S. National Transportation Safety Board (NTSB), Boeing, and the Federal Aviation Administration (FAA).

This tragic event adds to Boeing’s ongoing challenges, including prior aircraft quality issues and a financial strain from a nearly two-month machinist strike. Boeing’s shares are already down 30% this year.

As the investigation unfolds, Boeing will face further scrutiny, which could have lasting impacts on investor confidence and its reputation.