TGI - Why the Stocks of Boeing Suppliers Spirit AeroSystems and Triumph Group Took Off on Thursday
The Boeing (NYSE: BA) 737 MAX is flying again, and it's giving a lift to the stocks of Boeing suppliers, including Spirit AeroSystems Holdings (NYSE: SPR) and Triumph Group (NYSE: TGI) as well. Shares of both companies rose as much as 10% on Thursday after Boeing got its first major order for the plane in nearly two years.
The 737 MAX was grounded in March 2019 after a pair of fatal accidents, and both Boeing and its suppliers have suffered in the months since. Though Boeing continued to manufacture the plane through most of the grounding, it did so at a reduced rate that put a strain on suppliers including Spirit and Triumph.
But last month, the 737 MAX was cleared for takeoff , and Boeing on Thursday got a major boost when European discount airline Ryanair announced plans to buy 75 of the 737 MAX planes . Ryanair is already a major Boeing customer, and the deal was likely timed to coincide with the plane's return to service, but it is still a major sign of confidence for the beleaguered jet.
For further details see:
Why the Stocks of Boeing Suppliers Spirit AeroSystems and Triumph Group Took Off on Thursday