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Boeing shares fell more than 6% on Thursday after an Air India Boeing 787-8 Dreamliner crashed in western India, abruptly halting a remarkable two-month rally that had seen the stock surge nearly 70%.
The crash occurred Thursday near Ahmedabad's Sardar Vallabhbhai Patel International Airport shortly after takeoff, with Air India confirming there were 242 people aboard the London-bound flight. The stock decline wiped approximately $10 billion from Boeing's market value in early trading.
Boeing shares had been trading at $129 in April before climbing to $217 as of Wednesday, marking the stock's highest point since January 2023 and representing a dramatic recovery from 2024's lowest levels. The impressive rally had restored investor confidence in the aerospace giant after a troubled period.
The stock's strong performance over recent months reflected growing investor optimism about Boeing's operational improvements. The company had avoided any mechanical incidents for over a year, helping rebuild its reputation for safe manufacturing practices—a critical factor following previous safety concerns.
Boeing's rally was further bolstered by significant order wins in the Middle East. The company secured major contracts worth a combined $110.8 billion, including a $14.8 billion order from Etihad and a massive $96 billion deal with Qatar Airways for 210 aircraft total. These orders substantially strengthened Boeing's order book and improved near-term financial prospects.
The Air India accident involving the 787-8 Dreamliner model threatens to reignite concerns about Boeing's aircraft safety, potentially undermining the confidence investors had been rebuilding. The cause of Thursday's crash remains under investigation by Indian authorities.
The timing of the incident is particularly challenging for Boeing, coming just as the company appeared to have turned a corner with investors after demonstrating improved safety protocols and securing substantial new business from international carriers.
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