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Boeing shares drop as Air India crash revives safety worries
Boeing shares fell 4.9 percent after an Air India 787 crash revived global concerns over the plane maker's safety and quality standards.
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Reuters - Thu, 12, Jun 2025
- 14:09 EDT
- 8
(Top)- Wreckage of a Boeing 787 Dreamliner lies at the site where the Air India plane crashed in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave; (Bottom), REUTERS/Hollie Adams /
The crash of an Air India 787-8 Dreamliner jet minutes after taking off on June 12 poses another challenge for Boeing, whose new CEO has been trying to rebuild trust following a series of safety and production challenges.
It was not clear what caused the crash, as air disasters can occur for a number of different reasons. The London-bound plane crashed in India's western city of Ahmedabad, authorities said, in the world's worst aviation disaster in a decade.
The disaster, in which most of the 242 people on board were killed, muddies the efforts of CEO Kelly Ortberg to move past its recent issues after the planemaker hit production targets in May and received a vote of confidence from airline bosses in recent months.
Also read: British Indian leaders condole London-bound plane crash
Shares were down about 4.9 percent on June 12. Boeing said it was aware of the initial reports and was working to gather more information.
Before the crash, airline executives had been voicing greater confidence in Boeing's rebound in deliveries and in Ortberg's leadership after years of reputational damage for the planemaker.
At a recent summit in New Delhi, executives were more optimistic over Boeing's crises around safety and regulation.
The widebody 787 planes, one of the most modern passenger aircraft in service, have never had a fatal crash until the Air India incident. They were grounded in 2013 due to battery issues, but no one was reported injured.
"It's a knee-jerk reaction (to the incident) and there's revised fears of the problems that plagued Boeing aircraft and Boeing itself in recent years," said Chris Beauchamp, analyst at IG Group.
Boeing's narrowbody 737 MAX jets were grounded for years following two fatal crashes and have faced years of scrutiny and production delays.
Last year, the U.S. planemaker came under renewed scrutiny after a door plug blew off a 737 MAX 9 mid-flight, prompting a temporary FAA grounding and fresh concerns over quality control.
Shares of Spirit AeroSystems, a key supplier, and GE Aerospace, which makes engines for the jet, also fell about 2 percent each.
GE Aerospace said it has activated its emergency response team and would support the investigation, but did not specify if the Air India aircraft was equipped with its engines.
The engine maker did not immediately respond to a Reuters request for comment.
Boeing's outstanding debt also sold off modestly after the crash. Its bonds maturing in May 2029 were trading at 88 basis points over Treasuries, or 10 basis points wider than on June 11, according to a bond broker.
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