Boeing’s stock price fell after the plane crash in South Korea

• Boeing shares fell 6% after the Jeju Air crash in South Korea over the weekend.
• A Boeing 737-800 crashed, killing 179 of the 181 people on board.
• The crash investigation is focused on a possible bird strike and undercarriage failure as causes.

Boeing Shares fell 6% on Monday. plane crash in South Korea over the weekend.

The 15-year-old Boeing 737-800 of Korean budget airline Jeju Air crashed on Sunday morning after it overran the runway at Mueang International Airport.

As a result of the plane crash, 179 of the 181 passengers and crew members died.

The Korean government believes a bird strike could have been a factor in a fatal accident. The pilot made the emergency Mayday call just minutes after Muan Airport’s control tower warned of a bird strike risk.

In addition, video footage of the crash showed that the plane’s landing gear did not deploy during landing, suggesting a potential mechanical failure.

The crash is another setback for Boeing, which has been in recovery mode this year after two deadly crashes of its 737 MAX jet in 2018 and 2019, the FAA grounding the plane for nearly two years, and a mid-flight door jamb ejection in January 2024. and revolving door of CEOs.

As South Korean authorities, the FAA and the NTSB investigate the crash, Boeing investors will be eager to learn whether the crash was caused by a malfunction of the Boeing plane or an external factor, such as a bird strike.

According to analysts at Bloomberg Intelligence, it is unlikely that the Boeing 737-800 that crashed over the weekend was due to initial production problems.

“The Jeju plane that crashed on Dec. 29, registration number HL8088, had been in service for more than 15 years and likely underwent a comprehensive check, known as a D check, as well as an undercarriage replacement,” said George Ferguson, a senior analyst at Bloomberg Intelligence. in a note on Sunday.

Still, investors can look back on Boeing’s past troubles and start the holiday-shortened trading week by selling shares.

Local media of South Korea reported that the same model Boeing 737-800 had an undercarriage failure on Monday. The plane landed safely.

Boeing shares are down 34% year-to-date, a much lower performance S&P 500 an increase of more than 20%.