This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.
Why hasn’t Wall Street jumped on the bandwagon, too? Trading hours. Boeing’s home at the New York Stock Exchange just opened up, and investors were eager to pounce — or, in this case, pack up and go home, at least until some of the 737 MAX uncertainty gets cleared up.
Just after the market opened, $BA fell to around $366 a share, representing a drop of just over 13% from its Friday close.
While a $56+ single-day drop in share price would be the single largest to ever hit the company, you can expect the share value to rise and fall throughout the day. Also, with Friday’s $422.54 close price, Boeing’s stock is worth far more now than it was during its largest-ever percentage drop — of 17.63% (but just $7.66) — when the market re-opened after the September 11 attacks, on September 17, 2001.
So why the sudden slump? Boeing has a lot riding on the success of the 737 MAX, and two disasters with chilling similarities could spook customers — airlines and passengers alike. According to the company, “The 737 MAX is the fastest-selling airplane in Boeing history, accumulating nearly 4,700 orders from more than 100 customers worldwide.” With a list price of nearly $122 million, losing any of those orders would be far from ideal.
The crash could have a ripple effect throughout the industry as well, as countries and airlines begin to ground their planes, pending the outcome of this latest investigation. For example, according to research conducted by Raymond James & Associates, 5% of of Southwest’s available seats are on the 737 MAX, with that figure dropping to 2% at American Airlines.
The type represents 1% of available seats at United, which operates the larger 737 MAX 9, though that figure will climb to 2% as the airline plans to add more aircraft next month. Grounding the MAX at any of these airlines would mean canceled flights, and the lost revenue that comes in tow.
For more on this latest 737 MAX tragedy, see:
- Ethiopian Airlines Boeing 737 MAX Crashes After Takeoff from Addis Ababa
- The Striking Similarities Between Lion Air and Ethiopian 737 MAX Crashes
- How to Tell If You’re Flying on a Boeing 737 MAX in North America
Know before you go.
News and deals straight to your inbox every day.
NEW INCREASED OFFER: 60,000 Points
TPG'S BONUS VALUATION: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- Chase Sapphire Preferred named "Best Credit Card for Flexible Travel Redemption" - Kiplinger's Personal Finance, June 2018
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- No foreign transaction fees
- 1:1 point transfer to leading airline and hotel loyalty programs
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards