Just days after soaring to a 15-month high, Boeing Co. BA is facing harsh headwinds. The stock fell more than 5% on Thursday following reports that a Dreamliner 787-8 carrying more than 200 passengers crashed shortly after takeoff near Ahmedabad, India.

The tragic event has rattled investor confidence and reignited safety concerns that Boeing had worked hard to put behind it.

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Momentum Was Building On All Fronts

Boeing had been riding a major comeback story. After years of supply chain snarls, regulatory pressure and reputational damage, the aerospace giant had just broken above its previous downtrend, reaching an intraday high of $212.34 on June 2. That rally, which pushed shares up over 13% year-to-date as of earlier this week, was fueled by aerospace recovery, defense contracts, and a rebound in 737 MAX production.

The company had resumed 737 MAX deliveries to China following a temporary trade truce and scored major commercial wins, including a $96 billion deal with Qatar Airways. Meanwhile, its Defense, Space & Security segment returned to profitability and landed new deals like the F-47 program. Analysts responded with enthusiasm—RBC and TD Cowen issued $230 price targets, and Bank of America upgraded the stock to a Buy.

Read Also: Peter Schiff Warns Qatar’s $200 Billion Boeing Deal Could Spike US Inflation, Interest Rates — Says Treasury Sell-Off May Follow

Crash Undermines Confidence Amid FAA Scrutiny

The Dreamliner crash comes at a precarious time. Although the cause is still being investigated, the incident threatens to derail Boeing's fragile recovery.

The Federal Aviation Administration continues to cap monthly 737 MAX output at 38 units and inspects every jet before delivery, limiting Boeing's ability to scale. A new safety scare could prolong that oversight.

Risks Still Cloud The Flight Path

Even before Thursday's drop, challenges loomed. Tariff uncertainties, materials inflation, and a still-healing aerospace supply chain pose structural risks.

While Boeing stands to benefit from U.S. trade diplomacy – especially under the Trump administration's defense-first strategy – investors are now reminded that sentiment can shift quickly when headlines turn grim.

Despite a vast order backlog, Thursday’s market reaction highlights the volatility baked into Boeing's recovery story. Investors betting on liftoff may have to buckle up for more turbulence ahead.

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Photo: Boeing 787-8 Dreamliner for Air India Debuts in New Delhi, courtesy Boeing