Boeing shares tumbled 8% in premarket trading on Thursday after an Air India 787-8 Dreamliner carrying 242 people crashed near Ahmedabad, India, minutes after takeoff. The incident marks the first fatal crash involving the widebody jet, casting a shadow over its previously strong safety record.
The aircraft, en route to London's Gatwick Airport, went down in a civilian area close to the airport. Authorities have not yet determined the cause of the crash. Boeing stated it is gathering information and coordinating with investigators.
This development complicates CEO Kelly Orthberg's efforts to restore confidence in Boeing, which has faced prolonged scrutiny over its 737 MAX jets following two fatal crashes between 2018 and 2019. While the 787 Dreamliner fleet experienced battery-related grounding in 2013, no fatalities had been reported until now.
Suppliers Spirit AeroSystems and GE Aerospace saw shares drop 4% each. GE Aerospace activated its emergency response team but did not confirm whether its engines powered the crashed aircraft.
Analyst Chris Beauchamp of IG Group noted the market reaction reflects renewed concerns about Boeing's recent challenges. The incident underscores the aviation industry's delicate balance between safety assurances and operational pressures.
