Boeing Co (NYSE : BA) has faced scrutiny all through 2024. Its reputation has taken a major hit after a series safety incidents including the Alaska Airlines incident on January 5th.
Quantum Metric’s recent survey indicates a marked decline of passenger confidence.
According to Danielle Harvey of Quantum Metric’s Global Vice President, “Our research indicates that travelers are increasingly researching Boeing aircraft and possibly avoiding them before booking their flight.”
Discount carriers are not recommended for travelers
The survey revealed that 20% of respondents research the aircraft type prior to finalizing their travel plans.
In addition, 13% of travelers avoid discount carriers to improve their safety. This is despite the fact that Airbus’s A320 is more popular than Boeing’s A320.
Brendan Sobie, of Sobie Aviation, points out that Boeing’s issues affect all airlines, regardless of their business models.
Boeing Stock: Is it Worth Buying in September?
Boeing’s ongoing crisis is reflected in the stock performance of its company, which has fallen by around 30% since 2024.
Aviation safety is relatively high, despite the multiple incidents that Boeing aircraft have experienced this year.
Professor Arnold Barnett’s research published in the Journal of Air Transport Management notes that the likelihood of fatal accidents has decreased significantly on commercial flights, with a rate of one in every 13,7 million passengers between 2018 and 2022.
This raises the question of whether Boeing’s current share price weakness is overstated.
Sheila Kahyaoglu, of Jefferies, suggests that Boeing could rebound. She recommends it as a purchase with a potential price target of $270. This represents a 55% increase. Wall Street rates Boeing as well.
Crispus Nyaga, a market analyst, believes that Boeing’s recovery will be gradual. He expects that the stock will remain range-bound with resistance around $192. A break above this level may pave the way for a share price of $213 in the next few months.
This post Passenger confidence in Boeing aircraft drops amid increasing safety concerns, survey findings may be modified as new developments unfold.
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