Boeing Co. (NYSE:BA) is back in the spotlight after a Boeing 737-800 operated by South Korea's JejuAir crashed at Muan International Airport on Sunday, tragically killing 179 of 181 passengers and raising fresh questions about the aerospace manufacturer's safety record.
What Happened: The crash comes amid Boeing's ongoing challenges, including a 30% stock decline in 2024 and production restrictions imposed by federal regulators following January's Alaska Airlines door plug incident on a 737 MAX aircraft, reported Associated Press on Sunday.
JejuAir's shares plunged 7.67% to 7,570 ($5.14) South Korean won following the crash, while Boeing's stock, already down 28.22% year-to-date, faces uncertain trading as markets process the incident's implications.
Aviation consultant and former Delta Air Lines chief pilot Alan Price emphasized that the 737-800 involved in Sunday's crash differs from the troubled MAX variant, calling it "a very proven airplane" with a strong safety record.
"We are in contact with Jeju Air regarding flight 2216 and stand ready to support them. We extend our deepest condolences to the families who lost loved ones, and our thoughts remain with the passengers and crew," Boeing wrote on X on Sunday.
pic.twitter.com/TIrIUBw4RB
— The Boeing Company (@Boeing) December 29, 2024
Why It Matters: The incident adds to Boeing's recent setbacks, including a seven-week machinists strike that disrupted production of key aircraft models and January's FAA manufacturing oversight restrictions. The company has struggled to rebuild its reputation following two fatal 737 MAX crashes in 2018 and 2019 that killed 346 people and led to $23 billion in losses.
Under new leadership since CEO David Calhoun's departure in August, Boeing has initiated safety improvement discussions among 70,000 employees. The cause of Sunday's crash remains under investigation by South Korean authorities.
Market analysts note that while distinct from previous 737 MAX issues, the crash could further impact investor confidence in Boeing as it competes with European rival Airbus for market share in the commercial aviation sector.
Price Action: Boeing Co.'s stock is trading down 4.15% at $173.50 during Robinhood's overnight trading service. On Friday, the stock closed at $180.72, up 0.19% for the day, before edging higher by 0.10% in after-hours trading to $180.90. Year to date, Boeing's stock has fallen significantly, down 28.22%, according to data from Benzinga Pro.
Boeing has a consensus price target of $197.85 from 23 analysts, with a high of $260 and a low of $85. The latest ratings from JP Morgan, Wells Fargo, and RBC Capital average $158.33, implying a 12.47% downside.
Boeing's 30-day average trading volume stands at 10.71 million shares, with a 52-week range of $137.03 to $264.66. The company has a market capitalization of $135.34 billion, and its 14-day Relative Strength Index is at 77.4, indicating overbought conditions.
