What happened with the UPS cargo jet that crashed? Initial report provides some answers.

By Claudia Assis

Boeing, GE Aerospace stocks fall after NTSB report on UPS plane crash points to evidence of 'fatigue cracks'

Fire and smoke mark where a UPS cargo plane crashed near Louisville, Ky.'s airport on Nov. 4. A new report focused on the plane's pylon.

Federal regulators on Thursday released an initial report about the United Parcel Service cargo plane crash that killed 14 people in Kentucky, leading investors to dump shares of GE Aerospace and Boeing, which had merged with the cargo jet's maker nearly 30 years ago.

The investigation is centering on the UPS (UPS) cargo jet's left pylon, where "evidence of fatigue cracks" were found and the engine separated. There were also areas of "overstress failure" in other parts, the National Transportation Safety Board report said.

The report included dramatic stills from a surveillance video from the Louisville, Ky., airport showing the left engine separating from the wing as the plane took off, and a fireball engulfing that side of the plane.

The cargo jet climbed but did not get higher than about 30 feet before it crashed, the report said. The accident happened on Nov. 4; the dead include three crew members aboard the airplane and 11 people on the ground. Some 23 people on the ground were injured, the report said.

The plane, a McDonnell Douglas MD-11F, was more than 30 years old. Boeing (BA) merged with McDonnell Douglas in 1997, a deal that many still point out as the beginning of troubled times at Boeing and the perceived start of a marked shift in the company's culture away from engineering.

After a slew of problems in recent years, including two fatal crashes and a CEO change, Boeing has said it is prioritizing operational quality.

It is unclear if Boeing would be on the hook for any liabilities stemming from crash and the McDonnell Douglas plane. But investors were dumping Boeing shares all the same. And shares of GE Aerospace (GE) also headed south, as the plane was equipped with GE CF-6 series engines.

Boeing's stock sank 3.4% on Thursday toward a seven-month low, while GE shares reversed an earlier intraday gain of as much as 2.1% to trade down 3.4%.

According to the report, the NTSB invited Boeing and GE Aerospace to be part of the investigation, alongside UPS, the Federal Aviation Administration and unions.

-Claudia Assis

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11-20-25 1824ET