Boeing shares sink as deadly crash spurs aircraft safety concerns

Boeing (BA) shares were on track to slide more than 10% Monday morning after one of the airline’s new 737 Max 8 models crashed Sunday, killing all passengers on board and raising questions over the safety of the company’s aircrafts.

All 157 passengers and crew members aboard Ethiopian Airlines Flight 302 departing from Addis Ababa were killed in a crash on Sunday, which took place minutes into the flight. At least eight Americans were aboard, along with individuals from more than 30 other nationalities.

“Boeing is deeply saddened to learn of the passing of the passengers and crew on Ethiopian Airlines Flight 302, a 737 MAX 8 airplane,” the company wrote in a statement Sunday. “We extend our heartfelt sympathies to the families and loved ones of the passengers and crew on board and stand ready to support the Ethiopian Airlines team. A Boeing technical team will be traveling to the crash site to provide technical assistance under the direction of the Ethiopia Accident Investigation Bureau and U.S. National Transportation Safety Board.”

Shares of Boeing declined 10.6% to $377.75 each as of 8:34 a.m. ET. The aerospace giant’s stock was up 31% for the year-to-date through Friday.

The cause of the crash has not yet been determined. However, the Digital Flight Data Recorder and Cockpit Voice Recorder of the flight have been recovered, Ethiopian Airlines said in a Twitter post Monday morning.

The Boeing aircraft involved in Sunday’s deadly crash had been delivered to Ethiopian Airlines in November, had flown 1,200 hours and was last maintained in early February, according to Ethiopian Airlines group CEO Tewolde Gebremariam.

This marks the second time in less than six months that a new Boeing aircraft crashed within minutes of departure. In October, a Lion Air 737 Max 8 carrying 189 people went down over the Java Sea and killed all those on board. While both crashes are still under investigation, there is no evidence of a connection between the two.

Grounding flights

Airlines in Ethiopia, Indonesia and China grounded their Boeing 737 Max 8 fleets on Monday as concern over the safety of one of Boeing’s newest aircrafts mounted.

“Given that two accidents both involved newly delivered Boeing 737-8 planes and happened during take-off phase, they have some degree of similarity,” the Civil Aviation Administration of China (CAAC) said in a statement. Chinese airlines comprise more than one-quarter of the global fleet of the Boeing 737-8 aircraft, according to Reuters.

Other countries have telegraphed that they are taking extra precautions in the wake of the deadly crash. Cayman Airways announced that it was temporarily grounded its two Boeing 737 Max 8 aircrafts, effective Monday, until more information is received on the investigations. Turkish state-run carrier Turkish Airlines in talks with Boeing and is following the developments of the investigations, CEO Bilal Eksi wrote in a Twitter post Monday. South Korea is carrying out a special investigation of the aircraft, after the carrier Eastar Jet became the first in the country to take delivery of a Boeing 737 Max 8. India’s Directorate General of Civil Aviation said on Monday it will issue safe instructions Monday or Tuesday for Indian carriers operating the aircraft.

Boeing stock sinks

The 737 Max is Boeing’s most important aircraft model, comprising nearly a third of the company’s operating profit, according to Bloomberg.

Shares of Boeing declined 10.6% to $377.75 each as of 8:34 a.m. ET. The aerospace giant’s stock was up 31% for the year-to-date through Friday.

Boeing’s share declines will weigh heavily on the Dow, a price-weighted index. The stock drop pointed to an about 300-point drag on the industrials-heavy index in early trading Monday.

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.

Read more from Emily:

What Wall Street strategists forecast for the S&P 500 in 2019

Beer sales are lukewarm and pot could be part of the problem

Consumer sentiment plunges to its lowest level since Trump’s election

Netflix revenue disappoints, shares dip

Read Full Story