Boeing (NYSE:BA) shares are experiencing a dramatic decline on Thursday, June 12, 2025, falling 7.45% to $198.06 after closing at $214.00 the previous day.
The aerospace giant’s stock has dropped $15.94 per share in early trading, representing a significant selloff that appears to be directly linked to breaking news of an Air India plane crash in Ahmedabad, India.
The tragic incident involves an Air India Boeing 787 Dreamliner that was scheduled to operate flight AI 171 from Ahmedabad to London Gatwick, marking another serious aviation incident involving Boeing aircraft. This latest development adds to ongoing concerns about Boeing’s aircraft safety and operational reliability, which have consistently impacted investor confidence and stock performance over recent years.
Air India Boeing 787 Crash: Key Facts and Developing Story
An Air India Boeing 787-8 Dreamliner crashed at Ahmedabad’s Sardar Vallabhbhai Patel International Airport on Thursday morning, according to Reuters and ANI news agencies.
Air India Chairman N Chandrasekaran confirmed the tragic incident, stating “With profound sorrow I confirm that Air India flight, AI 171 operating Ahmedabad London Gatwick was involved in a tragic accident today.”
The flight was scheduled to depart from Terminal 2 of the Ahmedabad airport, with FlightRadar24 data indicating the aircraft involved was indeed a Boeing 787 Dreamliner. The airport has suspended all flight operations following the incident, with an airport spokesperson confirming that the Sardar Vallabhbhai Patel International Airport is currently not operational.
Gujarat Chief Minister Bhupendra Patel has ordered immediate rescue and relief operations, instructing officials to arrange for emergency treatment of injured passengers “on a war footing.” CNBC has reached out to local police and India’s Directorate General of Civil Aviation for additional details as the story continues to develop.
This marks another significant incident involving Boeing aircraft, adding to the manufacturer’s ongoing challenges with aircraft safety perceptions. The Boeing 787 Dreamliner, while generally considered a reliable aircraft, has faced various technical issues throughout its operational history.
As this is a developing story, full details about the cause of the crash, casualties, and extent of damage remain unclear, with authorities likely to conduct a comprehensive investigation into the circumstances surrounding the accident.
Boeing Stock Impact: Plunge and Recent Performance
The selloff suggests that institutional and retail investors are reacting swiftly to news that could potentially affect Boeing’s reputation and future business prospects. Prior to this morning’s decline, Boeing had been showing relatively strong performance with the stock up 20.90% year-to-date, significantly outperforming the S&P 500’s 2.39% gain over the same period.
The company’s shares had also posted a 15.36% gain over the past year, again beating the broader market’s 12.04% return. However, this morning’s sharp drop threatens to erode some of those gains, particularly if the negative sentiment persists or if investigation findings reveal any aircraft-related issues. The market capitalization impact is substantial, with Boeing’s market cap falling from approximately $161.36 billion based on the previous close to roughly $149.4 billion at the current premarket price.
Analyst sentiment remains mixed, with recent ratings including RBC’s reiterated “Outperform” rating and raised price target to $230, though such optimistic projections may face scrutiny given today’s developments. The stock’s reaction underscores the continued sensitivity of Boeing shares to aviation safety incidents, reflecting ongoing investor concerns about the company’s operational and reputational challenges in the commercial aviation sector.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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