Why Shares of Commercial Aerospace Companies Are Up Today
Right now, the commercial aerospace sector is tied to the health of the airlines, which in turn is tied to the progress made containing the COVID-19 pandemic. The headlines on the pandemic front of late have had a hint of optimism, pushing airline shares higher and offering some relief to the aerospace sector.
Shares of Boeing (NYSE: BA), TransDigm Group (NYSE: TDG), Raytheon Technologies (NYSE: RTX), and Heico (NYSE: HEI) all soared at the opening Tuesday before giving up some of their gains as the day went on.
Boeing and its supply chain have enjoyed an unprecedented surge in new plane sales over the past decade, fueled by healthier airlines looking to grow in a fuel-efficient manner. That surge was likely on its last legs even before the pandemic struck, but the outbreak and its impact on global travel have effectively brought new plane sales to a halt.
Source Fool.com
