TGI - Why Shares of Aerospace Suppliers Were Up Today
News that Boeing's (NYSE: BA) 737 Max is flying again gave a lift to a number of the aerospace company's key suppliers. Shares of Triumph Group (NYSE: TGI) closed up 18% on Monday, while shares of Allegheny Technologies (NYSE: ATI) climbed 9.4% and shares of Heico (NYSE: HEI) gained 5.8% on the day.
The commercial aerospace sector needs a lot more than the 737 Max to regain altitude. But getting one of Boeing's most important jets off the ground is, if nothing else, an important step in the right direction.
Commercial aerospace suppliers have been hit hard by the COVID-19 pandemic, which has caused airlines to cut flights and rethink growth plans. But for companies involved in the Boeing 737 Max supply chain, the pain started well before the pandemic, with the Max grounded in March 2019 after a pair of fatal accidents.