Plane Crash: Boeing Stock Continues to Fall
Boeing stock (BA) continues to fall as the aerospace giant’s headaches mount. After a series of safety incidents, a criminal investigation has been opened against Boeing by the Justice Department. Boeing's shares have fallen 4% as of Monday morning, with over $45 million of market share wiped out, and over 5.6 million shares traded. Since the beginning of the year, Boeing's stock has decreased by 29% due to growing concerns over the company's safety.
The decline comes after the New York Times reported that Boeing has failed almost 40% of Federal Aviation Administration audits of its manufacturing process for its 737 Max commercial jets. Adding to the mess, Boeing has experienced a recent streak of near tragic accidents with their planes, giving them a sour reputation over the past few months.
On Jan. 5, an Alaska Airlines jet operated by Boeing experienced a midair incident, with a wall panel coming loose leaving a hole in the aircraft’s walls at 16,000 feet. This is just one of many safety incidents Boeing has experienced over the past few months. More recently, on March 7, a Boeing 777 aircraft lost a tire just after takeoff from San Francisco International Airport. The tire landed in a parking lot, crashed into 2 cars, and then rolled into a fence. Thankfully no one was injured, as the flight carrying 235 passengers and 14 crew members made a safe emergency landing in Los Angeles.
Other recent incidents include: A Boeing 737 Max sliding off the runway in Houston, and another aircraft that encountered severe turbulence mid-flight, resulting in multiple injuries among the passengers and crew. Additionally, passengers on a United Airlines flight from Houston to Fort Myers saw flames burst from one of the engines of their Boeing 737-900 aircraft 20 minutes after takeoff.
Boeing’s stock is now down 29% this year, making Boeing the second-worst performing company listed on the S&P 500. This is a major red flag to any Boeing investor and needs to be monitored closely by stockholders.
Investors are increasingly concerned about the potential long-term impacts on Boeing's financial health and market position, as the company grapples with these safety challenges. The aviation industry is closely monitoring how Boeing addresses these issues to restore confidence among passengers and stakeholders alike.
Boeing’s terrible start to the year becomes about much more than just its stock price. The company entered 2024 with an already dissipating reputation due to safety concerns. Restoring assurance among their consumers, passengers, and shareholders becomes harder and harder by the day as safety struggles continue.
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Photo Caption: Boy watching a plane fall out of the sky
Photo Credit: AD_Images / Pixabay
