For the Boeing stock, the start of the new trading year in 2024 could hardly have gone worse. In morning trading on Monday, the stock plummeted by over 7 percent, with a loss of around 13 percent since mid-December (as of January 8, 2024, 10 am).

Shortly before the end of the year, the aircraft manufacturer made headlines due to potentially loose screws on its 737 Max model, and over the weekend, a whole window and parts of the fuselage flew out of an Alaska Airlines aircraft (737 Max 9) during a flight.

Fortunately, the dramatic situation with a hole in the airplane at an altitude of almost 5,000 meters ended well for the passengers, but Boeing will face consequences: Alaska Airlines is now grounding all 65 of its 737 Max aircraft. This will result in another loss of trust for the aircraft manufacturer – once again benefiting its competitor, Airbus.

Boeing facing multiple problems with 737 Max series In 2018 and 2019, two 737 Max 8 aircraft crashed, leading to a long flight ban. The damage to Boeing’s reputation was immense. However, even with the newly delivered 737 Max 9, there are once again problems. The inspection of the screws was just the beginning.

The ripped-out window and emergency landing of the Alaska Airlines aircraft mark a new low point for Boeing. To make matters worse, the 737 Max 9 aircraft in question was only delivered to the airline at the end of October – it is brand new and has only been in use for about 2 months.

Boeing stock: a major blow to its reputation For the US aircraft manufacturer, the recent „almost-disaster“ is another major blow to its reputation and is likely to result in a loss of trust among passengers, airlines, and aviation authorities. But it doesn’t stop there: Investors are also losing the trust they had painstakingly regained after the previous incident.

In 2023, the Boeing stock had actually seen a significant increase, although the prices from 2018 and 2019 were still far from being reached again. Now, there is another drop in the stock price. Investors should proceed with caution. It is uncertain at this point whether this accident will have any further impact on the entire series of aircraft. The situation may change in the medium to long term, but for now, the Airbus stock would be the better choice for investors.

Boeing stock, 10 years – Source: https://aktienscreener.com