Boeing shares react significantly to airplane accidents, particularly when caused by design flaws. A seasonal analysis shows that such incidents result in an average share price decline of -4.45%, with losses persisting for weeks.
Boeing and Airbus have historically been the two largest commercial aircraft manufacturers globally, with Boeing dominating the North American market and Airbus having a significant presence in Europe and other parts of the world. At the moment, the serious manufacturing issues plaguing Boeing has resulted in upside for Airbus shares. See the strong gains the stock has been making below!
Boeing’s share prices have fallen on Monday with the news that the FAA are temporarily grounding and inspecting a certain Boeing 737 Max nine aircraft operated by US airlines. The grounding is expected to impact over 170 aircraft and Boeing share prices fell pre-market on this fresh bout of negative news for the 737 Max aircraft.
