The 737 Max 8 was the same plane that went down in a deadly Lion Air crash last year
Boeing has lost roughly $27 billion in value since Sunday’s crash of an Ethiopian Air 737 Max 8
Sales of the 737 Max account for roughly a third of Boeing’s profit
Boeing expects 737 Max models to make up 90 percent of 737 deliveries in 2019
Boeing shares extended their slide Tuesday as a growing list of countries move to ground the aircraft maker’s 737 Max model jets after the crash of an Ethiopian Airlines flight killed 157 people Sunday.
Boeing’s stock price has fallen nearly 12 percent since the accident, erasing roughly $27 billion in value amid concerns the accident could have links to the October 2018 crash of a 737 Max 8 operated by Indonesia’s Lion Air that killed 189.
The worst-case scenario for Boeing, in which the 737 Max 8 is fully grounded and the company is forced to halt deliveries of the plane, could cost the aviation giant more than $5 billion, the Washington Post reported, citing analysts at Jefferies.
Although experts warn that it’s too early to know what caused the Ethiopian Airlines crash, both crashes occurred shortly after takeoff, suggesting a possible connection. Other concerns are focusing on new software used by the Max 8 that’s designed to automatically adjust a plane’s flight angles when they’re too steep.
“Reports are early, but the similarities between the Lion Air and (now) Ethiopian 737 Max plane crashes are hard to ignore,” UBS analyst Myles Walton told clients in a note after a decline in Boeing shares following the latest incident.