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Boeing (BA) stock price increased by 19% on Monday despite the fact that the company will pause operations at its facilities in South Carolina starting on Wednesday.
Boeing Co (NYSE: BA) stock on Monday experienced a 19.47% rise as it contributed 16 points (10%) of the Dow Jones Industrial Average’s 1,627 point gain. The surge has made the stock become a reference point in its history as in 2020 alone Boeing stock has surged more than it had in the past 39 years.
The firm’s share is now used as a proxy to measure the impact of coronavirus on the aerospace industry as this has not been unprecedented because the virus has managed to halt half of the global commercial jet fleet.
As per reports from Cirium that provide aviation data, it reports that 14,500 planes are parked, leaving fewer than 12,000 jets in service.
On average, airline shares rose by just 4% on Monday.
Boeing (BA) Stock amidst Coronavirus Plant Shutdown
Boeing on Monday revealed that it would shut down operations at its 787 Dreamliner facility in South Carolina from Wednesday, and also Airbus Group (EPA: AIR) said it would close its Alabama facility.
Boeing also over the weekend said they would keep Seattle-area plants for civilian aircraft closed indefinitely due to the coronavirus after initially planning a temporary shutdown.
These factors did not stop Boeing from its massive surge on Monday alongside other positive coronavirus news in the U.S and Europe.
Additionally, its 787 plant in North Charleston, S.C., will also close on Wednesday after the second shift until further notice. This is because South Carolina became the latest state to issue a stay-at-home order Monday.
The Dow Jones aerospace giant closed its Puget Sound and Moses Lake factories on March 25 for 14 days to perform additional deep cleaning activities at coronavirus-impacted sites. Boeing said on Sunday that it would continue to clean the facilities:
“These actions are being taken in light of the company’s continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state, the reliability of the supply chain and additional recommendations from government health authorities.”
Amidst safety concerns, demand for Boeing jets is also plunging as the coronavirus crisis slows air traffic to a minimal level.
The firm last week offered early retirement and buyout package to around 160,000 workers to enable them to save cash as several thousand are expected to take the exit package.
As at the time of writing, the firm’s stock is up by 4.49% and trades at $ 155.17.