The news
The value of Boeing Co (NYSE:BA) fell 4.53% in pre-opening trading Monday, according to Benzinga Pro. The decline follows a tragic air crash in South Korea, which marked the deadliest time of the year for the country.
What happened : The accident occurred on Sunday, when a Boeing 737-800 operated by Jeju Water crashed at Muan International Airport. The plane, which was carrying 175 passengers and six crew members, drifted off the runway, hit a wall and burst into flames. This disaster resulted in the death of 179 people.
Following the incident, the acting president of South Korea, Choi Sang-mokordered emergency safety checks on all Boeing B737-800 aircraft operated by the country’s airlines.
The flight, Jeju Air number 7C2216, had left Bangkok and attempted to land shortly after 9 a.m. local time, Korea’s transport ministry said. The accident adds to Boeing’s ongoing challenges, including a 30% drop in its value in 2024 and production restrictions following a January incident with Alaska Airlines.
Under the leadership of its new CEO, David Calhounwho left office in August, Boeing is focusing on improving safety. The cause of the accident is under investigation by South Korean authorities.
Meanwhile, Boeing stock has a price target of $197.85, with recent ratings averaging $158.33, suggesting downside potential.
A Boeing spokesperson told Benzinga: “We are in contact with Jeju Air regarding Flight 2216 and stand ready to support them. We send our deepest condolences to the families who have lost loved ones, and our thoughts are with the passengers and crew.”
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Why it matters : The crash of Jeju Air Flight 7C2216 is the latest in a series of challenges for Boeing, which has been grappling with safety and production issues. The company has been in the spotlight since the grounding of the 737 MAX in 2019, following two fatal accidents. Efforts to restore confidence in its aircraft continue, but incidents like the one in Korea threaten to undermine those efforts.
In January, Boeing faced production restrictions following an incident involving an Alaska Airlines flight. The company has worked on improving its safety protocols and the reliability of its aircraft. The departure of former CEO David Calhoun in August marked a change in leadership aimed at securing a more secure future for the company.
The recent accident could impact Boeing’s financial performance, with the company already seeing a 30% drop in its stock value in 2024.
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Disclaimer : This content was produced in part with the assistance of Benzinga Neuro and was reviewed and published by Benzinga editors.
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