Boeing shares plunged sharply in pre-market trading on Thursday, June 12, after an Air India-operated Boeing 787-8 Dreamliner crashed near Ahmedabad, sending shockwaves through the global aviation and investment communities. The aircraft, carrying 242 passengers and crew on a scheduled flight from Ahmedabad to London Gatwick, went down shortly after takeoff, with thick black smoke seen billowing from the crash site in a densely populated area.
The tragic incident marks the first major crash involving a Boeing 787-8 Dreamliner, intensifying scrutiny of Boeing’s safety record at a time when the company is already under pressure from regulators and investors. Emergency response teams rushed to the scene, and authorities are still working to determine the number of casualties and the precise cause of the accident. Flight data recorders have been recovered and are expected to provide critical information as investigations proceed.
Investor reaction was swift and severe. Boeing’s stock price dropped by as much as 8% in pre-market U.S. trading, falling to around $197 per share from a previous close of $214. The sell-off reflects heightened anxiety over potential regulatory fallout, reputational damage, and the risk of order cancellations from major airlines. Market analysts note that such a dramatic decline is a typical knee-jerk response to aviation disasters, particularly when they involve a flagship aircraft model.
The crash comes amid ongoing challenges for Boeing, which has faced repeated questions over the safety of its 737 MAX and 787 series. Regulatory authorities in the U.S. and India have launched parallel investigations, while the Federal Aviation Administration is expected to coordinate closely with Indian officials and Boeing representatives. The outcome of these probes could have far-reaching implications for Boeing’s future aircraft deliveries and its competitive position against rivals like Airbus.
With global aviation sentiment rattled, the incident has also weighed on shares of other airline and aviation-related companies. Investors are bracing for continued volatility as more details emerge and as the industry awaits official findings on the cause of the crash. For Boeing, the road to restoring trust with both passengers and shareholders just became significantly steeper.
