Turbulent Times for Boeing (NYSE: $BA) as Shares Plunge 3% Amid Incident on LATAM Flight and DOJ Probe

Boeing (NYSE: $BA), the world’s biggest aerospace company and a leader in the commercial jet industry, is currently grappling with significant hurdles as safety incidents involving its aircraft continue to mount. A recent mid-air incident on a LATAM Airlines flight has again brought the company’s manufacturing practices into sharp focus. 

On Monday, March 11, 2024, a Boeing 787 Dreamliner operated by LATAM Airlines experienced a sudden plunge mid-flight while en route from Sydney to Auckland. The alarming episode left at least 50 passengers injured, with one person in serious condition. Eyewitness accounts paint a harrowing picture, with passengers describing a scene of chaos as individuals were flung violently through the cabin, some hitting the ceiling with such force that blood was left behind. 

Brian Jokat, a passenger on the ill-fated flight, recounted the terrifying ordeal, stating, “The plane just dropped. It wasn’t one of those things where you hit turbulence and you drop a few times…we just dropped.” Jokat witnessed a fellow passenger, who was not wearing a seatbelt, fly upwards and strike the ceiling before crashing back down, sustaining broken ribs in the process. 

In the aftermath, LATAM Airlines Group expressed regret for the inconvenience and injuries sustained by passengers, subsequently canceling the affected plane’s next scheduled flight to Santiago. 

Justice Department Probes Boeing 

Adding to Boeing’s woes, a report from The Wall Street Journal revealed that the DOJ has launched a criminal investigation into the company. This probe stems from a separate safety incident in January involving an Alaska Airlines flight, where a door plug blew out mid-air, leaving a gaping hole in the aircraft’s fuselage. 

The Department of Justice’s investigation will examine the recent issues in Boeing’s production and manufacturing processes. These mishaps have had far-reaching implications for the broader airline industry, impacting flight availability, crew employment, and ticket prices. 

Boeing Stock Slides 

As of Monday, March 11, Boeing stock (BA) is priced at $192.37, reflecting a decrease of 3.08% compared to its previous closing of $198.49. The market capitalization stands at $117.359 billion, with the day’s trading range oscillating between $189.83 and $196.07.  

Over the past 52 weeks, Boeing has experienced a change of -2.40%, while the S&P500 52-Week Change registers a positive 32.88%. The 52-week high and low are recorded at $267.54 and $176.25, respectively. The 50-day moving average is $214.11, and the 200-day moving average is $214.32. The average trading volume over the past three months is 9.52 million shares. 

IS BA Stock A Buy?  

While the recent incident has undoubtedly raised concerns, Boeing’s resilience in adversity should not be underestimated. The company’s commitment to safety and its track record of innovation position it as a formidable force in the aviation industry.

Based on the positive analyst sentiment and the growth potential, Boeing’s stock (BA) presents an attractive investment opportunity for those seeking long-term gains. Therefore, a “buy” recommendation on Boeing’s stock is warranted, with a cautious optimism that the company will emerge stronger from this ordeal. 

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