Boeing ($BA) Stock Nosedives as Air India 787 Crash Ignites Fresh Safety Fears

Another day, another Boeing crisis—Wall Street''s favorite aviation giant can''t catch a break. Shares cratered after an Air India Dreamliner incident resurrected ghosts of the 737 MAX debacle.

Safety? What safety?

The 787''s latest mishap sent $BA into freefall, proving investors have the memory of a goldfish—until the next headline triggers their panic reflex. Analysts scrambled to downgrade while Twitter''s armchair experts diagnosed the ''root cause'' between sips of oat-milk lattes.

Short sellers feast

Hedge funds circled like vultures, betting millions that Boeing''s PR spin would crash harder than their faulty flight software. The company''s ''safety-first'' mantra? About as credible as a crypto influencer''s ''100x guaranteed'' shill.

One thing''s certain: until Boeing stops treating FAA audits like optional software updates, its stock will keep mirroring its malfunctioning altimeters—pointing relentlessly downward.

TLDR

• Boeing shares drop 7.45% to $198.06 after Air India 787 crash

• First total loss of a Dreamliner since its 2011 debut

• Incident renews concerns over Boeing’s aircraft safety record

• Spirit AeroSystems, GE Aerospace stocks also decline

• Market impact cuts Boeing’s market cap by over $11 billion

The Boeing Company (NYSE: BA) saw its stock plunge 7.45% to $198.06 on June 12, 2025, following the tragic crash of an Air India 787 Dreamliner.

The Boeing Company (BA)

This marks a steep drop from its prior close of $214.00. Pre-market trading had indicated an even sharper fall of up to 8%. This incident represents the first full loss of a 787 Dreamliner, a model that entered commercial service in 2011.

The crash occurred shortly after takeoff from Ahmedabad, India, on a flight bound for London Gatwick Airport. Air India confirmed that Flight AI 171 went down minutes after departure, with at least 200 bodies recovered so far, according to local authorities.

$BA: Boeing (-5%) shares plunged after an Air India Flight AI-171 — a 787-8 Dreamliner — crashed shortly after takeoff from Ahmedabad. This marks the first fatal crash involving a 787 since its commercial debut in 2011. GE Aerospace, which makes the plane''s engines, also saw a… pic.twitter.com/BMbhBzvdrF

— Briefing.com (@Briefingcom) June 12, 2025

Fresh Safety Concerns Emerge

Boeing’s ongoing challenges with aircraft safety have resurfaced with this incident. The Dreamliner line, which once symbolized next-generation aviation, has faced technical setbacks over the years. Analysts from Morgan Stanley remarked that this crash halts the recent upward momentum in Boeing’s stock, casting a shadow over the company’s recovery efforts.

Neil Wilson of Saxo UK warned that this event could undermine Boeing’s attempt to rebuild public and investor confidence. Spirit AeroSystems, Boeing’s supplier of fuselages and flight decks, saw its shares fall 2.5%, while GE Aerospace, a key engine supplier for the 787, dropped 1.5%.

Operational and Financial Impact on Boeing

Boeing’s market capitalization has tumbled from approximately $161.36 billion to $149.4 billion as investor sentiment soured sharply. Prior to this event, Boeing shares had performed strongly in 2025, rising 20.90% year-to-date and outperforming the S&P 500’s 2.39% gain. Over the past year, Boeing stock had posted a 15.36% increase.

This crash adds to Boeing’s difficult year. In January 2024, the company faced a high-profile incident involving an Alaska Airlines jet. Leadership changes soon followed, with Dave Calhoun stepping down as CEO and Kelly Ortberg taking over in August 2024. Ortberg’s tenure was marked by promises to return Boeing’s focus to engineering excellence.

Industry Reactions and Ongoing Investigations

Air India and Indian aviation authorities have launched investigations. The Sardar Vallabhbhai Patel International Airport in Ahmedabad remains shut for other flight operations. Gujarat’s Chief Minister called for urgent rescue and relief efforts, prioritizing treatment for survivors.

Boeing issued a statement expressing condolences and confirming its cooperation with Air India and Indian authorities.

Outlook and Analyst Sentiment

Despite today’s plunge, some analysts remain optimistic about Boeing’s long-term prospects. RBC Capital Markets recently reaffirmed an “Outperform” rating and raised its price target to $230. However, such forecasts could be reevaluated as crash investigations proceed.