Boeing Shares Drop Amid South Korea’s Deadliest Aviation Disaster

Boeing’s (NYSE:BA) stock fell over 4% in premarket trading on Monday following a tragic aviation accident involving a Boeing 737-800 in South Korea. The crash, which occurred at Muan International Airport, claimed the lives of 179 people and is being labeled as the deadliest air disaster in the country’s history.

Details of the Accident
Jeju Air flight 7C2216, en route from Bangkok, Thailand, attempted to land at 9 a.m. local time (0000 GMT). The aircraft skidded off the runway, struck a wall, and burst into flames. The crash resulted in 175 passenger fatalities, with only two crew members surviving. The survivors, found in the tail section, are being treated for moderate to severe injuries.

The South Korean transport ministry confirmed that this incident is the most severe crash involving a South Korean airline in nearly three decades.

Impact on Airlines and Markets

• Jeju Air (KS:089590) shares tumbled 8% on the Korea Exchange on Monday.
• Footage from local media shows the 737-800 skidding without its landing gear deployed, raising speculation about a potential bird strike or adverse weather conditions causing landing gear failure.

The accident surpasses past aviation disasters in the region, including the 1997 Korean Air crash in Guam, which claimed over 200 lives, and the 2002 Air China crash, which killed 129 people.

Investigation Underway
South Korea will lead the investigation, supported by the U.S. National Transportation Safety Board (NTSB), which is sending a team of experts. Representatives from Boeing and the Federal Aviation Administration (FAA) will also assist in the inquiry.

Broader Implications
The accident comes at a challenging time for Boeing, as any concerns about the safety of its aircraft could further weigh on investor sentiment. The 737-800, a predecessor to the 737 MAX, has a strong safety record, but this incident may reignite scrutiny on the model.

With the investigation ongoing, the market will closely monitor developments that could influence Boeing’s reputation and financial outlook.