TDG - Why Shares of TransDigm and Other Aerospace Suppliers Are Soaring Today
Shares of key Boeing (NYSE: BA) suppliers got a lift Wednesday after the aerospace giant gave a better-than-anticipated forecast for jet production. Commercial aerospace sales are going to take a hit due to the COVID-19 pandemic, but Boeing is going to try to keep making planes at a higher rate than many investors had feared.
Spirit AeroSystems (NYSE: SPR), a former Boeing subsidiary that is responsible for the fuselages of its planes, was up 16% on Wednesday afternoon, while shares of TransDigm Group (NYSE: TDG) and Allegheny Technologies (NYSE: ATI) both climbed more than 10%.
The pandemic has had a chilling effect on travel demand, leading airlines to cut flights, ground planes, and put off growth plans. That in turn has trickled down to the commercial aerospace sector, which had been counting on robust new plane sales to drive future growth.