phl63 Boeing Shares Drop After South Korean Crash

Updated:2025-01-06 05:43 Views:161

Boeing’s shares fell on Monday, a day after the deadly crash of a 737-800, a widely used model that is a staple of low-cost airlines, at an airport in South Korea. The passenger plane, operated by Jeju Air, was carrying 181 people, and all but two were killed.

Shares of Boeing dropped sharply at the open of trading in New York before regaining some ground. They closed 2.3 percent lower on the day.

South Korea’s transportation ministry said Monday that it would conduct inspections of the 101 Boeing 737-800 planes used by airlines in the country, including Jeju Air. The inspections were set to start Monday and be completed by Friday.

South Korea’s deputy transport minister, Joo Jong-wan, said at a news briefing that the inspections would look at maintenance records of major systems, including engines and landing gear.

Boeing said in a statement on Sunday that it was in contact with Jeju Air and was ready to help the airline. Jeju Air’s stock fell 8.7 percent at the close of trading in Seoul on Monday, hitting a record low.

“The accident’s root cause could be among several factors,” Myles Walton, an analyst at Wolfe Research, wrote in a note, adding that workmanship and design weren’t likely to blame. Still, “commercial aerospace’s infrequent but sometimes catastrophic accidents” present unique risks for aircraft manufacturers like Boeing, he wrote.

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