A plane departing from Ethiopia yesterday carrying 157 people crashed minutes after takeoff, killing every passenger. The New York Times reports that people from as many as 30 countries were on the plane.
As a result of this tragedy, Boeing’s business is in turmoil. This is the second 737 Max jetliner to unexpectedly crash, killing all onboard, in six months. The last one, a Lion Air jet departing from Indonesia, was said to be caused by mechanical problems. This reason for the Ethiopian Airline flight’s crash yesterday has not yet been determined. Boeing stock, however, is plummeting.
In pre-market trading, Boeing stock sunk more than 9%. The company lost as much as $21 billion in its market capitalization following this news.
In the wake of the crash, China has announced that it’s grounding all Boeing 737 Max 8 planes. It’s unclear if other countries are going to follow suit. As of now, Boeing hasn’t issued any guidance. The company told Reuters that the investigation about this tragedy is still in its early stages.
Currently the stock is down a little under 9% at 8.94%.