Shares of the plane maker plummeted sharply after an Air India Boeing 787-8 Dreamliner crashed just a few minutes after a takeoff from the Ahmedabad airport on Thursday. The shares of the company dropped by almost 8% in premarket trading, though they did recover somewhat to close down 4.58% at $204.20, dealing a hefty blow to the recent turnaround in its finances.
The deadly crash, which claimed more than 240 passengers on board flight AI171 to London Gatwick, was the first serious incident involving a Boeing 787 Dreamliner since the aircraft entered service in 2011. The horrific accident has fueled fresh criticism of the aerospace giant, which was struggling to restore its image after years of safety and production woes.
Details of the Air India crash
Air India plane AI171 that was carrying 242 people, 230 passengers and 12 crew, crashed shortly after taking off from Ahmedabad airport. Air traffic monitoring data indicated that the plane had only managed a height of 625 feet before it went out of contact. There were eyewitnesses who said that the plane failed to climb as expected but instead flew low to the ground before bursting into flames in a doctors’ hostel on the edge of the airport.
The plane was said to have issued a “Mayday” distress call within minutes of takeoff but suddenly vanished, with no further contact with air traffic controllers. Despite the catastrophic damage and ensuing fire, reports show that a single passenger survived the crash, though gravely injured.
Effect on Boeing’s financial revival
The accident is hard on the heels of an attempted revival for Boeing, which had been indicating improved finances after years of crises. Before the crash, Boeing stock had climbed more than 20% in 2025 on the strength of rising plane orders with new Chief Executive Kelly Ortberg, who took over in August 2024. The company had recently marked its billionth passenger on the 787 Dreamliner, which logged the model’s global popularity and so far unblemished safety record.
Morgan Stanley financial analysts said that the best for Boeing would be if the crash were caused by peculiar conditions such as pilot error that would not impact delivery of new planes. The worst would be a system fault that could result in fleet grounding and suspended deliveries, further eroding Boeing’s already weak financial health.
Boeing’s safety record under scrutiny
The Air India tragedy reignited criticism of Boeing’s safety inspections following a rollercoaster stretch for the manufacturer. The manufacturer had struggled to shake the disaster of two deadly 737 MAX crashes in 2018 and 2019 that led to a worldwide grounding of the model. There was further criticism of Boeing recently following a “door plug” malfunction on an Alaska Airlines flight in January 2024 that led to heightened regulatory scrutiny.
Although the 787 Dreamliner has been a shining achievement of safety since service entry, with no past fatal crashes, it is not untouched by technical woes. The aircraft model struggled with early problems in lithium-ion batteries, hydraulic and fuel leaks, and other teething issues that had to be fixed. In addition, allegations of defective manufacturing practices on Boeing factory grounds made by whistleblowers have ignited speculation regarding possible long-term structural soundness concerns.
Peeking into the future: How it impacts Boeing
Even though investigators will not be able to determine the cause of the crash for months or years, Boeing is already more pressure-cooked than ever before to prove its safety and quality. Boeing CEO Kelly Ortberg, who already owned up to “serious missteps” in Boeing’s safety culture in a Senate hearing, is now facing his first serious crisis since assuming the position of CEO.
The crash is a setback for Boeing’s attempts at restoring confidence among airlines, regulators, and air travelers. With its shares price still susceptible to further oscillations as the investigation continues, the trajectory of its recovery has been reshaped in dramatic terms, possibly affecting its market share against industry rival Airbus and its lofty production targets over the next few years.
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