The crash of China Eastern Airlines on March 21 might stain the image that The Boeing Company has been trying to build in the last few years after the incident of Boeing 737 Max crashes in 2018 and 2019 that led to 346 deaths and a worldwide cessation of the model all the way until December 2020 when the Federal Aviation Administration recertified the model.
Even though the Boeing that China Eastern Airlines operates is not a 737 Max, but 737-800 it still reflects the reputation and outlook of the American airplane manufacturer, despite the official report of the actual cost of the crash.
China was the first country to ground the Boeing 737 MAX after the crashes in Indonesia and Ethiopia. It is the only major market in the world where the Boeing 737 MAX has not resumed commercial flights.
The share price of Boeing fell 6.59% the day that Lion Air flight in Indonesia crashed on October 28, 2018, and 5.33% following the crash of an Ethiopian Airlines flight on March 10, 2019. The Boeing Company closed 3.59% lower at $185.90 per share on March 21, 2022, after the crash of China Eastern Airlines.
Currently, China has grounded all 109 Boeing 737-800s from operation until further notice, while the rescue mission and investigation continue to carry on at the crash site.
The share price of Boeing rose to a record high at $446.01 on March 1, 2019, and plunged as low as $89 per share a year after its high when the impact from Covid-19 pandemic hit the stock market. Currently, Boeing is trading at $191.04 per share. Still, not fully recovered from the pandemic shock, and if the investigation proved to be a system malfunction, it could jitter the upside of The Boeing Company.
