GE Aerospace Stock Under Pressure After Air India Boeing Crash: Bernstein Sees Likely Engine Issue

GE Aerospace shares fell 2.25% on Thursday and extended losses in after-hours trading following news that an Air India Boeing 787-8 aircraft crashed shortly after takeoff.

The tragic accident, which claimed more than 240 lives, has put fresh pressure on Boeing suppliers, with shares of Spirit Aerosystems (SPR) also slipping over 2%.

The aircraft, en route to London Gatwick, reportedly showed a slow rate of climb followed by a rapid descent, raising concerns about a potential loss of power on takeoff.

According to Bernstein analyst Douglas Harned, this pattern suggests the engines may have been a factor. He said the plane was powered by GE Aerospace’s GEnx-1B engines, a model known for its solid reliability record.

While the exact cause of the crash remains unclear, Harned noted that maintenance issues, either with the engine or airframe, are always possible in situations like this.

Aviation experts in India have also cited possible causes such as a bird strike, water contamination in the fuel leading to engine seizure, and control system failure.

Still, Bernstein maintained its ‘Outperform’ ratings on both Boeing and GE Aerospace, indicating confidence in the companies’ long-term outlooks despite the immediate market reaction.

On Stocktwits, sentiment for GE ended on a ‘bullish’ note on Thursday, with message volume jumping 377%.

“GE getting punished when nobody knows a damn thing how this crash happened, I hope the bounce is equally large, this is just idiotic,” said one user.

“$GE should double or triple by this time next year! Patience pays,” said another watcher.

According to a CNBC report, GE Aerospace is assembling a team to travel to India and analyze cockpit data to assist with the aircraft crash investigation.

The company also announced it will postpone its upcoming investor day, originally set for June 17, and instead align the event with the Paris Airshow.

Year-to-date, GE stock remains up nearly 43%. However, investors are now closely watching for further developments as investigators piece together what led to the crash.

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