Boeing’s share price tanks over 4% after Air India flight crash in Ahmedabad

June 13, 2025 | Business & Aviation News

Boeing Co., the world’s leading aerospace manufacturer, saw its share price plummet over 4.8% on Thursday after a fatal crash involving an Air India Boeing 787 Dreamliner in Ahmedabad. The incident, which marks the first fatal accident involving a Dreamliner aircraft, has triggered renewed global scrutiny over Boeing’s safety protocols and engineering practices.

The Crash: A Tragic Turn of Events

Air India Flight AI-171 was en route from London Heathrow to Ahmedabad when it reportedly suffered a catastrophic systems failure just minutes before landing. The aircraft, a Boeing 787-8 Dreamliner, crashed during a final approach, leading to the deaths of at least 56 passengers and crew members. Emergency responders rushed to the scene, but the wreckage and fire made rescue efforts incredibly difficult.

Initial reports suggest that the aircraft experienced sudden electrical failure, possibly impacting its fly-by-wire control systems and avionics. Aviation authorities in India, along with Boeing and the U.S. National Transportation Safety Board (NTSB), have launched a joint investigation.

Stock Market Repercussions

Shortly after news of the crash broke, Boeing’s stock price began to tumble during pre-market trading. By the time markets closed, Boeing shares had dropped by 4.87%, closing at $203.75—a sharp decline from its previous day’s price of over $214. Intraday trading saw prices dip as low as $195.50, reflecting investor anxiety.

The broader aerospace sector also faced turbulence. Shares of companies closely tied to Boeing’s supply chain, such as Spirit AeroSystems and GE Aerospace, also dipped 2–2.5%. Market analysts are concerned that the incident could spark another wave of regulatory scrutiny and delivery delays.

A Company Under Pressure

This latest incident adds to Boeing’s already strained reputation following a series of crises in the past decade—including the two fatal 737 MAX crashes in 2018 and 2019 and ongoing manufacturing quality issues. Despite implementing numerous safety and quality control reforms, Boeing is again under fire for the airworthiness of its jets.

CEO Dave Calhoun, who was scheduled to attend the Paris Air Show next week, has reportedly canceled his appearance to focus on the crash investigation. In a brief statement, Boeing expressed condolences to the victims’ families and pledged full cooperation with investigators. The company emphasized that safety remains its top priority, but the reassurance did little to calm jittery markets.

Investor Sentiment & Analyst Outlook

Market reactions were swift and severe, with investors fearing that the crash could signal deeper, systemic problems within Boeing’s production line. Morgan Stanley analysts noted that if the crash is linked to technical faults or design flaws, Boeing may face renewed regulatory hurdles, lawsuits, and even order cancellations.

Some analysts have retained a cautious “hold” rating on Boeing, pending the outcome of the crash investigation. RBC Capital Markets, which previously maintained an “outperform” rating with a $230 price target, is reportedly reviewing its projections.

“Given Boeing’s troubled recent history, this is not just about one crash,” said aerospace analyst Julia Wen of Blue Line Equity. “It’s about whether Boeing can truly regain the trust of airlines, regulators, and the flying public.”

A Dreamliner Nightmare?

The Boeing 787 Dreamliner was hailed as a revolutionary aircraft when it launched, known for its fuel efficiency, advanced composite materials, and cutting-edge avionics. But the program has faced numerous issues—from battery fires to production quality lapses at various plants. Until this week, however, the aircraft had no fatal accidents on record.

That record has now changed. Questions are being raised about how well Boeing has addressed past safety concerns and whether deeper oversight is needed—not just in the United States but globally. With over 1,000 Dreamliners currently in service worldwide, the implications are vast.

The Directorate General of Civil Aviation (DGCA) in India has ordered a review of all Dreamliner aircraft operated by Indian carriers. Other countries, including the UK, Singapore, and Australia, are reportedly considering similar reviews.

Long-Term Impacts

Boeing was just beginning to recover from its previous crises. Orders for new aircraft had picked up, particularly for long-haul jets like the 787, amid a rebound in global air travel. The crash could now derail that recovery, especially if major airlines delay or cancel pending orders.

The incident also comes at a sensitive time geopolitically. India has been positioning itself as a major aviation hub, and Air India has been aggressively expanding under Tata Group’s ownership. A tragic event involving one of its flagship routes may damage both the airline’s international standing and passenger confidence.

Conclusion

The Ahmedabad crash is not just a humanitarian tragedy—it’s a serious blow to Boeing’s financial standing and public image. While the cause remains under investigation, the consequences are already being felt across the aviation industry and global stock markets. With lives lost and confidence shaken, Boeing faces yet another test of its commitment to safety and transparency.

As details emerge in the coming days, all eyes will be on Boeing—not just for answers, but for accountability.