Boeing's Market Cap Takes a $46 Billion Hit Due to Safety Issues, the Second-Largest Drop in the Company`s History

April 7, 12:22 pm

The US aerospace giant Boeing has had a rough start in 2024. After a panel blowout at the beginning of the year, the aircraft manufacturer has faced a series of safety issues, including engine fire, loose bolts, a tire falling off one of their jets, and a 787 Dreamliner losing control mid-flight, injuring dozens of passengers. These safety issues have had a major impact on the trust level among travelers and caused a massive hit to the company's stock value.

According to data presented by AltIndex.com, Boeing's market cap has plunged by over $46 billion in just four months due to safety issues.

The Second-Largest Stock Value Drop in the Company's History

Boeing's problems have snowballed over the years. The company, once a synonym for engineering innovation and the high value placed on product safety, is facing severe security issues. However, these problems come as no surprise.

For years, Boeing has been accused of investing less and less in the people who built the planes and ensured their safety. The situation worsened after COVID-19 hit, when the company laid off thousands of people, raising concerns about the experience of those hired when the company began staffing up again post-pandemic. Still, the nonstop streak of bad news over the past four months has turned 2024 into one of the most challenging years the US aerospace giant has ever faced.

Between lost business, potential fines, and lawsuits due to security issues, Boeing lost tens of billions of dollars in stock value. In December 2023, its stock value amounted to $160 billion. Just a month later, this figure plunged to $121.4 billion. The negative trend continued over the past two months, with the company losing another $10 billion. As a result, Boing's stock value stood below $114 billion last week, showing a massive 25% drop in just four months.

Furthermore, statistics show this is the second-largest stock value drop Boeing has ever seen. Only the COVID-19 hit damaged the company's stocks more, erasing 55% of the stock value in the first months of 2020.

Only 10% of US Travellers Feel Safe about Traveling with Boeing

The massive financial hit due to safety issues might snowball by the end of the year as fewer and fewer travelers feel safe about traveling with Boeing planes. Last month, Morning Consult revealed a worrying result of a survey conducted among US travelers, which showed Boeing's reputation significantly dipped.

In just three months, the share of US travelers who feel safe about flying with Boeing more than halved, falling from 24% in Q4 2023 to only 10% in Q1 2024. The biggest change was among business travelers, whose level of trust plunged from 41% to only 16% in this period.

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