Boeing shares rise as firm hopes to ride out aftermath of 737 Max 8 aircraft crashes

Alex Daniel
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A piece of debris left after the crash in Ethiopia on Sunday (Source: Getty)

Shares in US plane maker Boeing have risen slightly in pre-market trading, in what the manufacturer will hope is a sign the global fallout from its crashed aircraft over the weekend is calming down.

The firm was 1.49 per cent up before US markets opened this afternoon, three days after after a a Boeing 737 Max 8 model operated by Ethiopian Airlines plunged to the ground on Sunday, killing all 157 people on board.

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Boeing has seen billions slashed from its value this week after its stock fell 6.15 per cent yesterday, following a 7 per cent drop on Monday.

The firm's shares were worth $378.42 at the close of trading yesterday, down from a 12-month high of $446.01 two weeks ago.

The European Union Aviation Safety Agency (EASA) was joined by others in‚ÄąChina, Singapore and Australia yesterday in putting a flight ban on the 737 Max 8 and 9 models after the crash.

An identical model operated by Indonesia’s Lion Air also crashed in October shortly after it took off from Jakarta, killing 189 people.

There has been no information yet to link the Lion Air and Ethiopian Airlines incidents, but concerns remain that both crashes were down to one – as-yet unidentified – operational defect.

Michael Hewson, analyst at CMC Markets, said: "If the uncertainty turns into cancelled orders Boeing’s problems could well go from bad to worse, in the event the cause of the crashes is not identified and resolved quickly."

Meanwhile, arch-rival Airbus has seen shares rise four per cent over the course of the week. The European manufacturer could stand to cash in on Boeing’s woes, according to Neil Robinson from the University of Salford.

Read more: Europe bans Boeing's latest plane model after Ethiopia crash

If European carriers ditch their Boeing planes or future orders, “Airbus might potentially step in… and increase product price accordingly,” he said.

There are fewer than 400 Boeing Max planes in active service globally, but the firm has taken more than 5,000 orders for the model, set to be delivered in the coming years.