AL - The Big Risk Facing General Electric in 2020
The recent news that General Electric (NYSE: GE) has terminated orders for 69 Boeing 737 MAX airplanes may have sounded to some like a net positive for GE. After all, it's no secret that the COVID-19 pandemic has hit the commercial aviation industry hard, so this sort of cutback measure is essential. However, the move serves to highlight a rarely discussed area of GE's operations that could provide the biggest negative surprise in its earnings in 2020. Let's take a closer look.
There are three takeaways from the announcement, with the first two being the most prosaic:
General Electric needs commercial aviation to come back. Image source: Getty Images.