TXT - Why Shares of Aerospace Companies Fell Today
A brief early June rally in airline stocks, suggesting that the worst of the COVID-19 pandemic might be behind us, faded quickly Thursday. It was a rough day for broader markets, and as airline stocks fell, they brought a lot of their key suppliers down with them.
Shares of Triumph Group (NYSE: TGI) fell 19% on Thursday, with shares of Embraer Brazilian Aviation (NYSE: ERJ) down 13%, Textron (NYSE: TXT) off 10%, and TransDigm Group (NYSE: TDG) down 8.7%.
The pandemic has depressed demand for travel, forcing airlines to cut flights and ground airplanes. The cuts are rippling through supply chains, putting pressure on shares of aircraft manufacturers like Boeing, Airbus, and Embraer, as well as a number of suppliers to the industry, including Triumph, Textron, and TransDigm.