Boeing Co. (NYSE: BA) shares fell sharply on Thursday, sliding more than 4.8% after an Air India plane carrying 242 people crashed shortly after takeoff from Ahmedabad airport. Emergency crews have recovered more than 200 bodies from the wreckage, making it one of the deadliest aviation disasters in recent years. According to local officials, the aircraft was a Boeing 787 Dreamliner — the first fatal crash involving the model since its introduction in 2011.
The incident marks a significant setback for the embattled aerospace giant, which has been attempting a high-stakes turnaround under new CEO Kelly Ortberg. Investors have rewarded Boeing’s recent momentum, with shares up approximately 18% year-to-date prior to Thursday’s decline. That rally had come on the back of a surge in new orders and optimism surrounding the company’s recovery following a turbulent 2024, when a door plug panel blew out midair on an Alaska Airlines flight, reigniting safety concerns.
Thursday’s crash has reignited global scrutiny on Boeing’s safety track record, which was severely damaged by two fatal 737 Max 8 crashes in 2018 and 2019 — one involving Lion Air and another Ethiopian Airlines. Those incidents revealed critical design flaws in the aircraft’s software, ultimately grounding the 737 Max worldwide for nearly two years. Boeing has since struggled to rebuild its reputation and stabilize production, especially amid supply chain difficulties and regulatory oversight.
While the cause of the Air India crash remains under investigation, the fact that it involved a Boeing aircraft — and a Dreamliner at that — has alarmed both regulators and investors. The Dreamliner, known for its fuel efficiency and advanced materials, had until now maintained a relatively clean safety record. A fatal crash tarnishes that reputation and could have ripple effects on future orders.
Shares of key Boeing suppliers also suffered on Thursday. GE Aerospace (GE), which supplies engines for the Dreamliner, declined over 2%. Spirit AeroSystems (SPR), which manufactures major airframe components, fell nearly 3%.
Market analysts warn that if the crash is traced to a mechanical or design fault in the 787, Boeing could face fresh regulatory hurdles and potential order cancellations — a blow to the company just as it regains footing. “This could derail the confidence the market had been slowly rebuilding in Boeing’s widebody program,” one aerospace analyst noted.
As authorities begin a thorough investigation, stakeholders across the aviation industry will be closely watching for any early indications of fault. For now, Boeing must again confront the painful reality of crisis management, just as it was beginning to emerge from years of turbulence.
