Boeing's Stock Takes a Hit Amidst Alaska Airlines Incident and Growing Troubles

Boeing shares plummeted by 8.6% in pre-market trading on Monday, causing a $13 billion loss in the company's stock market value. This decline comes as concerns mount about potential harm to the company's business following an incident where a Boeing 737 Max 9 experienced a mid-flight fuselage rupture. During an Alaska Airlines flight from Portland, Oregon, to Ontario, California, a section of the aircraft's wall became detached, resulting in a significant hole in the plane's side and requiring an emergency landing.

All Boeing 737 Max 9 aircraft have been ordered to be grounded by the Federal Aviation Administration until thorough inspection. This order affects 171 planes globally, with the airlines in Turkey and Panama also grounding their flights in compliance. Aviation trial attorney Robert Clifford informed CNN that Boeing will face reputational consequences, and may be responsible for compensating airlines for revenue loss.

Boeing has faced a series of problems starting with the grounding of the 737 Max in March 2019 after two fatal crashes. The financial losses for Boeing have continued to grow, with the company reporting annual losses for four consecutive years from 2019 to 2022. Additionally, Boeing logged a $2.2 billion net loss for the first nine months of last year, and its full-year results for 2023 are expected at the end of January.

Boeing's stock price has rebounded since the pandemic caused upheaval in the global airline industry, but it is still 34% lower than its peak in February 2020. On the other hand, shares in Airbus, Boeing's European competitor, are trading higher than their pre-pandemic levels and had increased by 2.2% from their previous close in Paris by 6:19 a.m. ET on Monday.

This is a developing story and will be updated.