Boeing shares lost more than 11 percent in premarket trading after its top-selling 737 MAX 8 plane was involved in a second deadly crash. Ethiopia, China and Indonesiaafter the Ethiopian Airlines crash on Sundaythat killed all 157 people on board.
Shares of Boeing declined $47.54 to $375 in trading before the market is scheduled to open at 9:30 a.m. E.T. Through Friday, the stock had surged almost one-third since the start of the year.
The 737 MAX — which includes three other models other than the MAX 8 — is Boeing’s fastest-selling airplane, the company said last month. The line has exceeded 5,000 orders as airlines get drawn to the new planes because of their fuel efficiency.
While there was no immediate indication why the Ethiopian Airlines plane went down in clear weather while on a flight to Nairobi, the crash was strikingly similar to, which killed 189 people when it went down in the sea off Indonesia. Both accidents involved Max 8s, raising questions about the aircraft’s safety and heightening investor concerns about the future of the top-selling plane.
The 737 MAX represent about two-thirds of Boeing’s future deliveries and deliver 40 percent of profit, The Wall Street Journal reported, citing analysts.
In a statement, Boeing said the company is sending a technical team to the crash site “to provide technical assistance under the direction of the Ethiopia Accident Investigation Bureau and U.S. National Transportation Safety Board.”