Shares of Boeing Co. (BA) plunged nearly 5% Thursday after one of its 787-8 Dreamliners operated by Air India crashed shortly after takeoff from Ahmedabad, India.
The aircraft, bound for London with 242 passengers and crew, went down just minutes into the flight. Local authorities confirmed there were no survivors.
The crash marks the first fatal accident involving a 787 Dreamliner since the aircraft entered commercial service in 2011. Until now, the wide-body jet had maintained a spotless record on fatal incidents. Boeing, already reeling from years of scrutiny over the troubled 737 Max program, is now once again in the regulatory spotlight.
Boeing’s stock fell as much as 8% in pre-market trading before recovering slightly. The drop translates to a market value decline of over $10 billion in just a few hours. GE Aerospace (GE), which supplied the GEnx-1B engines used on the downed aircraft, also saw its shares fall by over 4%, erasing billions in value.
Mounting Pressure on Boeing’s Comeback Strategy
For Boeing, the timing could hardly be worse. After five years of financial strain—including more than $35 billion in cumulative losses since 2019—the company had begun to ramp up production of its 787 series, thanks to a recent FAA clearance. The planemaker delivered just 348 aircraft in 2024, far behind rival Airbus’ 766.
The company’s recovery efforts have been complicated by a machinist strike in Washington state that halted production and delivery schedules earlier this year. Thursday’s crash now threatens to stall the turnaround further, as investigators from India’s Directorate General of Civil Aviation and the U.S. Federal Aviation Administration begin parallel inquiries into the cause of the crash.
Adding to investor unease is Boeing’s long history of quality control issues, including the high-profile grounding of the 737 Max fleet following two crashes in 2018 and 2019. Although the Dreamliner was previously viewed as a cornerstone of Boeing's future, any hint of systemic failure could lead to new delays or grounding actions.
GE Aerospace Also Faces Fallout
GE Aerospace, whose engines power a majority of Boeing’s wide-body aircraft, is also facing pressure. The company confirmed that it has activated its emergency response team and is cooperating with investigators. GE shares were down roughly 2.5% in early trading, with some intraday losses as high as 6%.
While early speculation includes possible engine failure, analysts caution that the investigation is in its infancy. Still, investors are bracing for potential disruptions in production and delivery schedules if the engines—or any part of the aircraft—are deemed a contributing factor.
Spirit AeroSystems (SPR), another key Boeing supplier and fuselage manufacturer for the 787, also saw its shares dip over 3%. Boeing is in the process of reacquiring the supplier, adding a layer of complexity to the unfolding crisis.
A Pivotal Moment for the Aerospace Industry
The fatal crash of Air India Flight 171 has shaken investor confidence in Boeing and cast a shadow over the broader aerospace sector. With regulators launching formal investigations and production schedules already under strain, both Boeing and GE Aerospace face a critical test.
Until the cause of the accident is confirmed, the uncertainty is likely to weigh on share prices, airline confidence, and future aircraft orders. The coming weeks will prove crucial as authorities work to determine whether this tragedy was an isolated event—or a signal of deeper, structural concerns within one of the world’s most advanced aircraft platforms.
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