Boeing shares lose $26 Bn after countries – UK, Singapore, China and Australia grounded MAX737 aircraft after the Ethiopian Airlines crashed just after it took off on Sunday killing all 157 people on board.
Shares of US airlines were widely lower in mid-day trade, with the S&P 1500 airlines index off 1.5 per cent. Shares have fallen as much as 10.8% since Monday wiping out nearly $26 Bn from the US plane maker’s market value.
Since US stocks began rebounding from the 2007-2009 financial crisis; Boeing shares have delivered a total return including reinvested dividends of nearly four times the performance of the full index. Southwest Airlines Co and American Airlines Group Inc, which analysts said were among the U.S. airlines most exposed to the Boeing aircraft model at issue, saw their shares fall more than 2 per cent.