TGI - Why Shares of Commercial Aerospace Suppliers Are Surging Today
Commercial aerospace suppliers have been hard hit by the COVID-19 pandemic, with airlines grounding planes in response to travel declines, and lower demand for spare parts and new planes from Boeing and Airbus.
But the shares have gotten a lift in recent days, as investor optimism grows that the pandemic's impact on the economy will be short-lived and airlines will be able to survive the shutdown. Shares of Spirit AeroSystems (NYSE: SPR) were up 11.5% as of 1:30 Thursday, with shares of TransDigm Group (NYSE: TDG) up 10.9%, and the stock of Triumph Group (NYSE: TGI) up 8.6%. Earlier today, all three companies were up between 13% and 19%.
Aerospace suppliers have had a strong decadelong run, with airlines expanding their schedules and buying new, more fuel-efficient jets in response to growing global travel demand. But the good times came screeching to a halt as the pandemic hit and travel demand plunged.