Editor’s Note:
Boeing Co BA saw a 4.53% decline in pre-market trading on Monday, according to Benzinga Pro. The drop follows a tragic aviation accident in South Korea, marking the country’s deadliest air disaster.
What Happened: The incident occurred on Sunday when a Boeing 737-800 operated by Jeju Air crash-landed at Muan International Airport. The plane, carrying 175 passengers and six crew members, skidded off the runway, hit a wall, and burst into flames. This catastrophe resulted in the loss of 179 lives.
Following the incident, South Korea’s acting president Choi Sang-mok ordered emergency safety checks on all B737-800 Boeing aircrafts being operated by the country's airlines.
The flight, Jeju Air 7C2216, departed from Bangkok and attempted to land shortly after 9 a.m. local time, according to South Korea's transport ministry. The crash adds to Boeing’s ongoing challenges, including a 30% stock decline in 2024 and production restrictions following a January incident with Alaska Airlines.
Under new leadership since CEO David Calhoun‘s departure in August, Boeing is focusing on safety improvements. The cause of the crash is under investigation by South Korean authorities.
Meanwhile, Boeing’s stock has a consensus price target of $197.85, with recent ratings averaging $158.33, suggesting a potential downside.
A Boeing spokesperson told Benzinga, “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.”
Why It Matters: The crash of Jeju Air 7C2216 is the latest in a series of challenges for Boeing, which has been grappling with safety concerns and production issues. The company has been under scrutiny since the grounding of the 737 MAX in 2019, following two fatal crashes. Efforts to restore confidence in its aircraft have been ongoing, but incidents like the one in South Korea threaten to undermine these efforts.
In January, Boeing faced production restrictions after an incident involving an Alaska Airlines flight. The company has been working on enhancing safety protocols and improving its aircraft’s reliability. The departure of former CEO David Calhoun in August marked a leadership change aimed at steering the company toward a safer and more secure future.
The recent crash could impact Boeing’s financial performance, as the company has already seen a 30% decline in its stock value in 2024.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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