Boeing 737 MAX Crashes Cause Turbulence For Stock

Hilary Kramer

Boeing 737 MAX crashes led to the rare response of a global grounding of the relatively new aircraft, caused uncertainty about how soon corrective action will be taken to allow the planes to be put back in service and heightened risk for investors in the stock.

Two Boeing 737 MAX 8 crashes within five months of each other share dubious similarities as each plane nosedived into the Earth within minutes after takeoff as pilots tried unsuccessfully to counter the autopilot’s ill-fated flight path. The pilots could not control the planes sufficiently to return to the respective airports where they had begun their journeys, causing airline regulators around the world to ban the Boeing 737 MAX jets and driving down the company’s share price.

Once every nation other the United States grounded the Boeing 737 MAX aircraft just days after the second of the two catastrophes, Boeing Co. (NYSE:BA) officials asked the U.S. Federal Aviation Administration (FAA) to follow suit, “out of an abundance of caution.” Roughly 60 percent of Boeing’s annual revenues come from its Commercial Airplanes manufacturing unit, contributing heavily to the stock price’s 11.62 percent slide between March 19 and March 8, the last trading day before March 10, when Ethiopian Airlines flight ET302 plummeted into the ground. That crash killed all 157 people on board.

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Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce,Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. Follow Paul on Twitter @PaulDykewicz.