Boeing shares experienced a significant drop on Monday, falling by 4% following the crash of a Boeing 737-800 on Sunday, which became South Korea’s deadliest air disaster, claiming the lives of 173 people. The cause of the crash, involving the Jeju Air flight, remains under investigation.
While the crash has raised concerns about Boeing’s safety record, aviation experts have been quick to distinguish this incident from previous issues involving the company. Alan Price, a former chief pilot at Delta Air Lines, emphasized that it would be inappropriate to link Sunday’s crash to the fatal accidents involving Boeing’s 737 Max in 2018 and 2019, which killed 346 people. Price stressed that the 737-800, which crashed in South Korea, is “a very proven airplane” and “very safe.”
The crash occurred in an already challenging year for Boeing, with its stock price dropping more than 30% in 2024. The company’s reputation took a major hit after the two deadly 737 Max crashes, which led to a combined loss of $23 billion and a decline in market share to European rival Airbus.
In addition to the earlier safety concerns, Boeing faced disruptions this year, including a strike by 33,000 machinists that halted production of key aircraft like the 737 Max and 777 airliner. This strike, which lasted seven weeks, came after the company’s reputation was further shaken by a January incident in which a 737 Max door plug blew off during an Alaska Airlines flight. In response, federal regulators imposed production limits on Boeing until safety measures were improved.
As the investigation into Sunday’s crash continues, Boeing’s future in the competitive aviation market remains uncertain, with the company facing mounting challenges both in terms of safety concerns and financial performance.
