Air India plane crash impact: Boeing, GE Aerospace stocks extend losses, down up to 2% in pre-market

The Air India aircraft crashed into residential quarters of BJ Medical College doctors in Ahmedabad's Meghaninagar area.

Boeing and GE Aerospace shares tumbled in pre-market session on June 13, extending strong losses for the second consecutive session after a London-bound Air India 787-8 Dreamliner aircraft crashed near the Ahmedabad airport, causing over 240 deaths.

GE Aerospace, which reportedly made the engine for Boeing's ill-fated plane, saw its share price decline 1.75 percent to hover around $236 in the pre-market session on Nasdaq. Boeing shares meanwhile dropped nearly 1 percent.

Notably, Boeing shares had plunged nearly 5 percent to close at $203.75 apiece on Nasdaq on June 12, while GE Aerospace ended the session over 2 percent lower at $239.99 per share, after the incident took place.

While the exact cause of the crash is not known yet, several analysts have pointed out that the possibility of GE Aerospace's engine failure being the cause may have sent the stock for a spin. Bernstein analyst Douglas Harned noted that the sharp decline seen by the plane right after takeoff can be attributed to GE Aerospace's GEnx-1B engine fault.

"The flight path after takeoff shows a slow rate of climb, before a rapid descent, suggesting a loss of power on takeoff, which would most likely be traced to the engines," Investing.com cited Bernstein's Douglas Harned as saying.

Morgan Stanley's Kristine Liwag was meanwhile cited by the report as saying, "Considering the long safety record of the 787 aircraft, investors view the market pullback of Boeing’s stock as overdone as the 737 MAX production rates improve."

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Notably, the two companies are significantly scaling down their public activities after the crash, with Boeing CEO Kelly Ortberg cancelling his plans to attend Paris Airshow which is scheduled to be held from June 16 to June 20 at Le Bourget. GE Aerospace also cancelled its investor day, stating that it will send a team to India to analyse data from the crash site.

The London-bound aircraft carrying 242 passengers crashed right after take off, with only one person surviving the tragedy.

Prime Minister Narendra Modi took to X and wrote, "The tragedy in Ahmedabad has stunned and saddened us. It is heartbreaking beyond words. In this sad hour, my thoughts are with everyone affected by it. Have been in touch with Ministers and authorities who are working to assist those affected."