Boeing stock is taking a beating Monday on news about a crash involving a 737 Max 8 jet.
The Boeing (NYSE:BA) 737 Max 8 jet was in use by Ethiopian Airlines when the crash took place on Sunday. This crash saw the plane falling to the ground shortly after taking off. This incident has rattled Boeing stockholders and is the second of its type in five months.
The aircraft accident on Sunday that has Boeing stock falling today saw all of the plane’s 157 people that were on board dying as a result. The other crash took place in October and Lion Air was operating the plane. All of the 189 people on that plane as died due to the crash.
The bad press surrounding the 73 Max 8 jet crashes is a real blow to Boeing stock. This is especially true due to how popular of an aircraft the 737 is. Close to 75% of all of BA’s deliveries in 2018 were of this line. It is also expecting to ship plenty more in 2019. However, some countries, including China and Indonesia, are already grounding some Boeing planes due to concerns, reports CNN Business.
“The early reaction of Boeing’s stock will be negative… on the back of the potential for a link between the crashes and financial implications to Boeing from any grounding (350 deliveries to date) or delivery delays (50+/mo being added to the fleet),” UBS analyst Myles Walton said in a statement obtained by CBS News.
BA stock was down 7% as of Monday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.