Boeing stock slumped early Monday after Korean officials ordered inspection of all aircraft similar to the one involved in the Jeju Air crash at Muan International Airport on Sunday. The crash reportedly killed 179 of 181 persons on the flight, after the Boeing 737-800 jet, which reports say landed without extending its landing gear.
Officials at the Ministry of Land, Infrastructure, and Transport, or MOLIT, said they would, on order from the country's acting President Choi Sang-mok, conduct a "comprehensive special inspection of the B737-800.
A note from JPMorgan on Monday noted that the aircraft that crashed was delivered to Ryanair in 2009 and has been leased to Jeju since 2017, according to reporting from The Fly. The 737NG family, which includes the 737-800, was first delivered in 1997, has a strong safety record and has been one of the most prevalent aircraft in the global fleet, the JPMorgan report said.
A company statement from Boeing said the company was in contact with Jeju and prepared to support them.
The crash occurs as South Korea's government is in chaos, after impeaching, then seeking the arrest of President Yoon Suk-yeol for briefly declaring the country under martial law on Dec. 3. When lawmakers impeached Yoon on Dec. 14, Han Duck-soo became acting president.
Then, on Friday, the leadership also impeached Han — the first time South Korea had impeached an interim leader. Choi Sang-mok, the finance minister and deputy prime minister, then became the country's new interim president.
Boeing Stock
Boeing shares traded 3% lower Monday morning.
Boeing stock has climbed in four of the past five weeks as the stock rebounded from a mid-November low — its lowest mark since November 2022. Possibly the most beleaguered stock within IBD's aerospace and defense industry group over the past five years, the Dow Jones component has quietly rallied to the point where a potential entry has emerged.
Plagued by the loss of market share due to two tragic crashes involving its 737 Max jets in 2018-19, crippling labor disputes, and issues surrounding quality control, still trades nearly 60% off its March 2019 peak.
Arguably, Boeing is building a bottoming base since making a torrid decline to as low as 89 in March 2020. If Boeing stock manages to hold recent gains and get closer to that July 31 high of 196.95, the stock could set up a potential breakout and new buy opportunity.
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