Benard /Andia/Universal Images Group/Getty Images
Boeing stock declined as much as 6% on Monday following a plane crash in South Korea over the weekend.
A 15-year-old Boeing 737-800 plane operated by Jeju Air, a Korean budget airline, crashed Sunday morning after it overran the runway at Muan International Airport.
The crash killed 179 of the plane's 181 passengers and crewmembers.
Authorities in Korea believe a bird strike could have been a factor in the fatal crash. The pilot issued a Mayday emergency call just minutes after the control tower at Muan airport warned of the risk of bird strikes.
Separately, video footage of the crash showed that the plane's landing gear did not deploy when it landed, suggesting a potential mechanical failure.
The plane crash represents yet another setback for Boeing, which has been in recovery mode this year since two deadly plane crashes of its 737 MAX plane in 2018 and 2019, the grounding of the airplane by the FAA for nearly two years, a blowoff of a door plug mid-flight in January 2024, and a revolving door of CEOs.
As authorities in South Korea and the FAA and NTSB investigate the crash, Boeing investors will be eager to learn if a malfunction in the Boeing plane caused the crash, or if it was an external factor like a bird strike.
According to analysts at Bloomberg Intelligence, it's unlikely that the Boeing 737-800 that crashed over the weekend was related to initial manufacturing issues.
"The Jeju airplane that crashed Dec. 29, registration HL8088, had been in service for over 15 years and likely underwent comprehensive inspections known as D checks, as well as landing-gear replacements," George Ferguson, senior analyst at Bloomberg Intelligence, said in a note on Sunday.
Yet, investors may be having flashbacks to prior Boeing plane issues, and kicked off the holiday-shortened trading week selling the stock.
Local media in South Korea reported that the same Boeing 737-800 model experienced the landing gear malfunction on Monday. The plane landed safely.
Boeing shares are down 34% year-to-date, badly underperforming the S&P 500's gain of more than 20%.
