US planemaker Boeing (BA.N) faced a tough year becoming the Dow Jones Index’s biggest loser for 2024, with its stock plunging 32% amid a series of crises. In stark contrast, rival Airbus (AIR.PA) climbed over 11% for the year, while the S&P 500 (.SPX) surged more than 23%.
Boeing’s stock began the year at $257.50 but took a sharp hit following a mid-air cabin panel blowout on January 5 aboard an Alaska Airlines (ALK.N) 737 MAX.
The incident triggered extensive federal investigations, involving the NTSB, Congress, the FAA, and the Justice Department. The FBI informed passengers on the flight that they might be considered crime victims. The FAA’s probe resulted in heightened scrutiny of Boeing’s operations, including restrictions on the number of 737 MAX planes it could manufacture. Additionally, the FAA postponed the certification of two new MAX variants that Boeing had intended to deliver to customers this year.
Throughout the year, Boeing continued to report significant losses across its commercial, military, and space divisions. In July, the company revealed a $4.7 billion deal to acquire struggling supplier Spirit AeroSystems (SPR.N), which manufactures 737 fuselages. Spirit has faced ongoing production quality issues, further complicating Boeing’s challenges.
Boeing’s Renewed Setback After 737-800 Crash
Boeing’s troubled year took a devastating turn with the crash-landing of a Boeing 737-800 in South Korea, resulting in the loss of 179 lives. This added to the company’s already extensive list of challenges, including safety issues, labor disputes, legal battles, and a plummeting stock value. The incident raises serious concerns about Boeing’s ability to overcome its prolonged setbacks and restore its once-dominant reputation in the aerospace industry.
Investigations into the crash are still underway, with preliminary reports indicating no direct link to the problems that affected Boeing’s 737 Max model. Alan Price, a former Delta Air Lines chief pilot, stated, “The 737-800 is a proven, safe airplane,” highlighting the distinction between the 737-800 and the 737 Max, which endured severe scrutiny following two fatal crashes in 2018 and 2019.
The combined impact of these incidents has significantly affected Boeing’s financial performance.
