On December 30, U.S. shares of Boeing fell sharply due to the landing accident of South Korea's Jeju Air Boeing 737.

On Monday, Boeing shares fell 2.3% to close at $176.55, causing the S & P 500 index and the Dow Jones index to fall 1.1% and 1%, respectively.Boeing said in an emailed statement that it had contacted Jeju Air about Flight 2216 and was ready to provide support.

event background

On December 29, 2024, a Boeing 737-800 aircraft operated by South Korea's Jeju Air suffered a serious accident while landing, killing 179 passengers and crew.

Jeju Air is a low-cost airline established in 2005 that operates 38 Boeing 737 aircraft, most of which are 737-800 models, and also operates two 737 MAX aircraft.The aircraft involved was manufactured in 2009 and has been operated by Jeju Air since 2017.

About the Boeing 737

The Boeing 737-800 aircraft (hereinafter referred to as the 737-800) is different from the Boeing 737 MAX family aircraft, which was grounded globally due to two fatal accidents in 2018 and 2019 and has attracted widespread attention to Boeing's safety record.

737-800 Since its launch in the late 1990s, more than 5,000 aircraft have been delivered, and its safety record is favorable compared to older jets and similar products from Airbus.

Boeing has been working to rebuild its reputation after two fatal accidents in the 737 MAX family of aircraft and, under the leadership of its new CEO, has launched safety improvement discussions involving 70,000 employees.Although the cause of the 737-800 accident is still under investigation, Boeing's stock performance and market confidence may be further affected.

Wolf Research analyst Myles Walton said the tragic crash of Jeju Air Flight 2216 should not have an impact on Boeing's stock and the aircraft manufacturer's current efforts to increase 737MAX production. The root cause of the accident may be one of multiple factors, but craftsmanship (15 years ago) and design are unlikely to be among them.

About Boeing Stock Price

Market analysts pointed out that although the accident is different from previous 737 MAX issues, it may further affect investors 'confidence in Boeing, especially in commercial aviation, which is competing for market share with European rival Airbus.Boeing faces many challenges in 2024, including a 30% drop in its share price and increased production restrictions by federal regulators.

As of Monday, Boeing's share price has fallen about 31% so far this year, and has fallen about 27% since the emergency exit plug of the 737 MAX9 plane fell off on January 5.2024 is destined to be a year in which Boeing's reputation will be greatly damaged.