HEI - Why Shares of Aerospace Suppliers Are Falling Today
Shares of TransDigm Group (NYSE: TDG) fell nearly 10%, and shares of Heico (NYSE: HEI) and United Technologies (NYSE: UTX) each fell more than 7%, as the economic impact of the COVID-19 coronavirus outbreak continues to grow.
The ramifications for the airline sector are going to last into the second half of 2020, at least, and lower travel demand will mean less flying and some loss of business for these commercial aerospace suppliers.
Airlines have been the hardest-hit stocks due to the outbreak, and evidence continues to mount that travel demand is cratering as the outbreak spreads. Last week, United Airlines Holdings cut capacity by at least 10% across its network, and JetBlue Airways is also revising capacity downward. Other airlines could follow instead of bearing the expense of flying near-empty planes.