Ahmedabad plane crash impact: Boeing shares fall 7% in pre-market trading

Boeing share price plunged by 7% in pre-market US trading on June 12 after an Air India aircraft with more than 200 people crashed near the airport in Ahmedabad.

The aircraft involved was Boeing 787-8 Dreamliner, according to Flightradar data, one of the most modern passenger aircraft in service.

The plane was headed to Gatwick airport in the UK. Boeing shares fell 7% to $200 in pre-market trading.

"We are aware of initial reports and are working to gather more information," said Boeing.

The 242 people included 217 adults and 11 children, a source told Reuters. Of them, 169 were Indian nationals, 43 were Britons, seven Portuguese, and one Canadian.

"At this moment, we are ascertaining the details and will share further updates," Air India said on X.

The news comes as the planemaker tries to rebuild trust related to safety in its jets and ramp up production under new Chief Executive Officer Kelly Orthberg.

"It's a knee jerk reaction (to the incident) and there's revised fears of the problems that plagued Boeing aircraft and Boeing itself in recent years," said Chris Beauchamp, analyst at IG Group told Reuters.

The crash occurred just after the plane took off, television channels reported. One channel showed the plane taking off over a residential area and then disappearing from the screen before a huge cloud of fire rising into the sky from beyond the houses.

Visuals also showed debris on fire, with thick black smoke rising up into the sky near the airport.

The plane crash in Ahmedabad is the latest in the litany of woes besetting the American planemaker.

In January last year, a door missing four bolts blew off a new Alaska Airlines Boeing 737 MAX jet at 16,000 feet. The ripple effect from the incident caused a crisis throughout the aviation industry, hitting suppliers, carriers and passengers.

Deliveries have been delayed as Boeing’s 737 programme faced regulatory scrutiny after the mid-air cabin panel blowout last year and suffered from the effects of a seven-week workers’ strike.

Air India ordered 220 Boeing planes in 2023.

With inputs from Reuters