Boeing shares tumble after fatal China crash
By Story Agencies, March 22, 2022Boeing shares tumbled early Monday following the fatal crash of one of its jets in China, where the US aviation giant was poised to soon resume deliveries of the 737 MAX.
The crash involved a Boeing 737-800 — a different model from the MAX — operated by China Eastern and carrying 123 passengers and nine crew members, according to Chinese aviation authorities.
Shares of Boeing fell 5.6 per cent to $182.06 in mid-morning trading, making it the biggest loser in the benchmark Dow Jones Industrial Average. The disaster prompted an unusually swift public reaction from President Xi Jinping, who said he was “shocked” and ordered an immediate investigation into its cause.
The drop in shares likely reflects worries the delivery timeframe for the MAX will slip as Chinese authorities investigate the crash.
Boeing’s airline deliveries are closely tied to the company’s revenue profile. A delay in Chinese deliveries could also potentially affect Boeing’s plans to ramp up manufacturing of the MAX.
Boeing did not directly address questions from AFP on how the crash could affect MAX deliveries.