Why Boeing (BA) Had its Worst Day on RecordMarch 11, 2019
Boeing (BA) was responsible for a good amount of market downside.
The stock fell more than 30 points on Monday after an Ethiopian Airlines flight crashed over the weekend, leaving no survivors. This comes just comes after another deadly crash involving the same model in Indonesia, which also left no survivors after five months ago.
“Boeing is deeply saddened to learn of the passing of the passengers and crew on Ethiopian Airlines Flight 302, a 737 MAX 8 airplane. We extend our heartfelt sympathies to the families and loved ones of the passengers and crew on board and stand ready to support the Ethiopian Airlines team. A Boeing technical team will be travelling to the crash site to provide technical assistance under the direction of the Ethiopia Accident Investigation Bureau and U.S. National Transportation Safety Board,” read a recent press release.
The plane used for both was a 737 MAX 8 jet, one of the company’s top-selling planes.
Such horrific incidents only raise a lot of questions about a plan that generated 60% of the company’s $101.1 billion in 2018 revenue.
Especially after countries and carriers grounded their fleets of that plane.
Ethiopian Airlines grounded all of its 737 Max 8 planes. China and Indonesia ordered the grounding of all 737 Max planes. Cayman Airways grounded two new 737 Max jets.
In addition, a decision by China’s Civil Aviation Administration to ground the planes hurts Boeing in a region where the company has been able to sell a large number of them. Chinese airlines have ordered at least 104 737 Max planes, and have taken delivery of at least 70, as reported by The New York Times.
Until the matter is investigated and resolved, Boeing is a stock to avoid.