Boeing stock climbs despite Air India tragedy, safety concerns still haunt the skies

Boeing shares closed nearly 2 percent higher in the previous session.

In a striking contradiction, Boeing’s stock has edged higher despite a deadly crash involving one of its aircraft. On June 12, an Air India-operated Boeing 787 Dreamliner crashed shortly after takeoff from Ahmedabad, killing 241 people on board. While the investigation is still underway, early speculation points to a possible engine thrust failure, with engines supplied by GE Aerospace. The tragedy has reignited long-standing concerns about Boeing’s safety record and manufacturing practices.

Yet, the market seems unfazed. From the day of the crash on June 12 to July 7, Boeing’s shares have gained 1 percent. Investor confidence appears to be buoyed by growing optimism among analysts that the worst may be behind the embattled aerospace giant. On July 4, Rothschild & Co Redburn upgraded Boeing to a Buy from Neutral, writing that “after years of troubles, things seem to be taking a more positive turn for Boeing and the company appears healthier.” The firm pointed to improvements in financials, internal processes, safety culture, and production discipline.

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The brokerage believes that if Boeing can accelerate deliveries of its 737 and 787 aircraft, it could add $1.7 billion in post-tax annual cash profit. That would push Boeing’s free cash flow above $14 billion by decade’s end—topping its previous peak of $13.6 billion in 2018. Just days before the Rothschild note, Bank of America had also upgraded the stock and raised its price target, signalling an unusual shift in sentiment.

But Boeing’s baggage is far from forgotten. Earlier this year, a panel covering an unused emergency exit door blew off a new 737 Max mid-flight—investigators later found it hadn’t been properly bolted into place. The incident sparked renewed fears over quality control, coming just as Boeing was trying to recover from years of reputational damage. In 2024, the company delivered only 348 aircraft—its weakest performance since the pandemic. Its output has been repeatedly disrupted, first by quality lapses, then by labor unrest, including a major strike in Washington state that halted production at key factories.

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The echoes of past tragedies continue to reverberate. The crashes of Lion Air and Ethiopian Airlines in 2018 and 2019, both involving Boeing 737 Max jets, killed 346 people and led to the grounding of the aircraft worldwide. Investigations revealed a flawed software system and serious lapses in pilot training—failures that deeply eroded trust in Boeing's engineering and corporate culture.

Despite the stock’s recent resilience, the company remains under intense scrutiny. With the latest crash still fresh and questions around safety unanswered, investors are betting on a turnaround—but doing so in a landscape still shaped by doubt.

Boeing shares closed nearly 2 percent higher in the previous session.

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