Boeing shares plunge as more airlines ground jets

NEW YORK, March 12 (Xinhua) -- Boeing shares continued to plunge on Tuesday after sharp losses in the previous session, as more civil aviation authorities and countries announced to ground the aerospace giant's 737 Max after Sunday's deadly crash in Ethiopia.

Boeing shares fell about 6.3 percent at midday to 374.74 U.S. dollars apiece, rebounding some from its lows of sinking more than 7 percent in the morning session. The stock fell 5.3 percent at Monday's close after plunging as much as 13 percent for the biggest intraday decline since Sept. 17, 2001.

Ethiopian Airlines confirmed that a Boeing 737 Max 8, bound for Nairobi, Kenya, crashed shortly after taking off from the Ethiopian capital Addis Ababa Sunday morning, killing all 157 people on board.

It was the second time in five months that Boeing's best-selling aircraft had a fatal crash. In October, a Lion Air plane crashed into the sea off the Indonesian capital, Jakarta, killing all 189 people onboard.

The accident led civil aviation authorities in many countries, including China, the UK, Malaysia, Australia and Indonesia, to ground all flights involving the aircraft model.

Edward Jones, a financial services firm headquartered in the U.S. state of Missouri, lowered its rating of Boeing shares to hold from buy on Monday, saying the company's second deadly crash of its 737 MAX 8 aircraft in the past five months may have a tangible effect on near-term earnings.

"The accidents may result in additional expense and some delay in orders, which, from a business perspective, could pressure financial results," Edward Jones analyst Jeff Windau said in a note to investors, cited by CNBC.

The 737 Max is Boeing's most important aircraft type, generating about one third of the company's operating profit. The type is a key part of Boeing's effort to compete with rival Airbus.

Dozens of airlines now have one of Boeing's 737 Max jets in their fleets. In the United States, American and Southwest fly the 737 Max 8 and each have more on order.

U.S. Federal Aviation Administration said on Monday that it is not taking any actions against the Boeing 737 Max 8.

shares of Southwest Airlines declined 2 percent around midday after declining about 0.3 percent in the previous session. The carrier said it had 34 Boeing 737 MAX 8 jets in its fleet of over 750 aircraft as of Dec. 31, 2018.

shares of American Airlines were down more than 2 percent at midday Tuesday following a modest gain during Monday's trading.