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Boeing shares tank after China Eastern Airlines plane crash

Boeing’s stock dropped by as much as 8% in premarket trading Monday following reports that one of its planes operated by China Eastern Airlines has crashed with 132 passengers on board.

The plane was a six-year-old Boeing 737-800 model — not one of the 737 Max variety there were grounded around the world after deadly crashes in Ethiopia and Indonesia. The 737 Max has yet to return to service in China.

Boeing shares were recently off 5.5 percent at $182.32.

The Civil Aviation Administration of China confirmed China Eastern Airlines Flight 5735 had crashed in the southern province of Guangxi with 123 passengers and nine crew members on board. There was no confirmation on the number injuries or casualties, though media reports said first responders found no signs of survivors.

“Can confirm the plane has crashed,” China Eastern Airlines said in a statement on the incident.

The cause of the crash was not immediately clear. Boeing said it was aware of reports the plane had crashed and was “working to gather more information.”

Debris from the China Eastern Airlines plane crash is found in the mountains.
Twitter / @CGTNOfficial
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Boeing 737-800 planes comprise a significant portion of China Eastern’s fleet.

Boeing has increased production following a halt in air travel during the COVID-19 pandemic. The manufacturer’s stock has been under pressure following the 737 Max crashes — sinking nearly 25% over the last 12 months.

China Eastern Airlines is one of the country’s three largest carriers. Boeing 737-800 planes comprise a significant portion of its fleet.

Data from flight tracking service FlightRadar24 showed the plane was traveling at approximately 30,000 feet when it “started to lose altitude very fast” – with a vertical descent of 31,000 feet per minute. The plane was traveling at 523 miles per hour at the start of its descent and crashed around 2:30 p.m. local time.

Boeing shares have been under pressure following deadly crashes involving its 737 Max model.

The US Federal Aviation Administration also confirmed it was “aware of reports that a China Eastern Airlines Boeing 737-800 plane crashed this morning in China.”

“The agency is ready to assist in investigation efforts if asked,” the FAA said in a statement.

With Post wires

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