Boeing Co shares dropped 10% on March 11, 2019, after China, Indonesia, and Ethiopia ordered airlines to ground their Boeing 737 MAX 8 fleets following the Ethiopian Airlines crash that killed 157 people. This marked the second fatal incident involving the aircraft model in five months.
The crash of the Nairobi-bound 737 MAX 8 near Addis Ababa on March 10 followed the October 2018 Lion Air disaster, which claimed 189 lives. Both incidents involved the same aircraft model, prompting regulatory actions and investor concerns.
Boeing's shares fell to $381.72, erasing $32 billion in market value. The decline came as investigators recovered black box data from the Ethiopian crash, with Ethiopian state TV confirming both cockpit voice and flight data recorders were retrieved.
Despite the setbacks, Boeing remained the world's top planemaker, delivering 806 aircraft in 2018. However, the crisis disrupted its record-breaking rally, which had seen its stock surge to $446 per share earlier in 2019.
Airline operators like Southwest and American Airlines reiterated confidence in the 737 MAX 8, while rival Airbus saw its shares rise 0.9% in Paris. Analysts noted potential long-term opportunities amid the turmoil, though safety and production disruptions remained key concerns.
