Financial Performance

Boeing Shares Continue to Fall as More Countries Ban 737 MAX 8 Planes

The FAA said the model remains airworthy as pressure builds from other parts of the world.
Lauren MuskettMarch 12, 2019
Boeing Shares Continue to Fall as More Countries Ban 737 MAX 8 Planes

Shares of Boeing were down more than 6% in early afternoon trading as more countries announced they were grounding commercial flights of the 737 MAX 8 following a crash on Sunday in Ethiopia that killed 157 people.

DZ Bank placed a “sell” rating on Boeing stock, the first brokerage to do so in two years, and Edward Jones downgraded the company to “hold” from “buy.”

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The British Civil Aviation Authority said it was banning flights of the plane, as did China, Malaysia, Singapore, Australia, Turkey, Germany, Iceland, and the Netherlands. China, with 97 jets, is the biggest market for the fleet.

“As a result of the review, the flights of Boeing 737 MAX 8 and/or 9 type aircraft have been suspended until a further decision is announced as a precaution in order to ensure flight safety,” the Turkish transportation and infrastructure ministry said in a statement following a review.

The U.S. Federal Aviation Administration, on Monday, said the 737 MAX 8 remained airworthy.

On Tuesday, Republican Senator John Thune, who sits on the aviation subcommittee of the commerce and transportation committee, said he would “prefer flying on some other plane” instead of the Boeing 737 MAX 8. Senators Dianne Feinstein and Richard Blumenthal have called for all Boeing planes in the series to be grounded until their safety can be ensured.

In October, a 737 MAX 8 crashed into the Java Sea, minutes after takeoff, killing 189.

“External reports are drawing similarities between this accident and the Lion Air Flight 610 accident on October 29, 2018,” the FAA said. “However, this investigation has just begun and to date we have not been provided data to draw any conclusions or take any actions.”

Boeing brought in nearly $100 billion in revenue in 2018, nearly 60% of it from its commercial airline business.