Shares of the company fell 5.6% at one point on Monday after a Boeing jet crashed in China, indicating a test of investor confidence, just as the planemaker was beginning to put up with several crises in its past.
Running news: A Boeing 737-800 plane carrying 132 people for China Eastern Airlines crashed on Monday in the mountains of southern China's Guangxi region.
The shares eventually closed down 3.6 per cent.
Context: Details about the crash in China are pending, but analysts say they would be surprised if it was the result of a malfunction in Boeing's plane.
According to aviation consultancy Cerium, via Bloomberg, the 737-800 has the best safety record for any aircraft. It is preceded by the 737 MAX, which experienced an extended grounding after several fatal accidents that exposed deception in the aircraft's development.
"Given the excellent long-term safety record ... we would be surprised if this accident was caused by a design or manufacturing defect," wrote CFRA Research Analyst Colin Scarola.
"Operator or maintenance issues" are generally far more likely in situations like this, which "suggests that the accident will have no long-term impact on Boeing," Scarola continued.
Yes, but: "Until we find out what really happened, we wouldn't be surprised to see sentiment for Boeing shares getting materially worse," Scarola said.
What they are saying: "Our thoughts are with the passengers and crew of China Eastern Airlines Flight MU 5735," Boeing said in a statement Monday afternoon. "Boeing is in contact with the US National Transportation Safety Board and our technical experts are ready to assist with the investigation led by the Civil Aviation Administration of China."
What we're looking at: whether China retaliates against Boeing. China has a vested interest in strengthening its narrow-body plane, the Comac C919, a competitor to the 737-MAX, which is still awaiting recertification in China.
According to the AP, Chinese state media reported that all 737-800 aircraft of China Eastern had been ordered to shut down following Monday's crash.
"Any excuse to delay Max further can be used opportunistically by the Chinese regulator," Scarola said. "China probably won't accept what they're doing. But we certainly think it could."
737-MAX airplanes are stable and I'm back in the air
Our Thought Bubble: Boeing has come a long way from the security crisis that erupted around the 737 MAX and the financial crisis stemming from the early months of the pandemic. But a clash with China could spell trouble at a time when the company was hoping for better days.