-GE Stock Is Having a Great Week. Thank Airbus.
-An improving commercial aerospace business appears to be the reason for recent gains. On Thursday, Airbus (AIR.France) announced plans to increase output of its A320 family of jets. The European airframe assembler says it will build 45 jets a month by the end of 2021, up from about 40 jets a month now.
-The big news for GE though is Airbus’s target of building 64 jets a month by 2023. That is a big increase, and signals that Airbus believes commercial air traffic will continue to recover. Air traffic in the U.S., over the past week, is still down about 30% from prepandemic 2019 levels. But that actually is an improvement from recent months, and traffic is up about 480% year over year.
-GE makes engines for both the A320 and Boeing ‘s (BA) 737 families of jets through its CFM joint venture with Safran (SAF.France). Safran stock is also seeing gains, rising about 3% for the week and trading just below a 52-week high.
-Boeing is also looking to boost 737 MAX production rates in coming months, while also delivering some of the MAX inventories that were built while that plane was grounded worldwide between March 2019 and December 2020.
-The increased output from Airbus—and Boeing—helps more than just GE and Safran; all aerospace suppliers benefit. Shares of Raytheon Technologies (RTX), Honeywell International (HON), and Woodward (WWD), for instance, all rose roughly 3% to 4% this week. The S&P 500 is up about 1.4%.
-An improving commercial aerospace business appears to be the reason for recent gains. On Thursday, Airbus (AIR.France) announced plans to increase output of its A320 family of jets. The European airframe assembler says it will build 45 jets a month by the end of 2021, up from about 40 jets a month now.
-The big news for GE though is Airbus’s target of building 64 jets a month by 2023. That is a big increase, and signals that Airbus believes commercial air traffic will continue to recover. Air traffic in the U.S., over the past week, is still down about 30% from prepandemic 2019 levels. But that actually is an improvement from recent months, and traffic is up about 480% year over year.
-GE makes engines for both the A320 and Boeing ‘s (BA) 737 families of jets through its CFM joint venture with Safran (SAF.France). Safran stock is also seeing gains, rising about 3% for the week and trading just below a 52-week high.
-Boeing is also looking to boost 737 MAX production rates in coming months, while also delivering some of the MAX inventories that were built while that plane was grounded worldwide between March 2019 and December 2020.
-The increased output from Airbus—and Boeing—helps more than just GE and Safran; all aerospace suppliers benefit. Shares of Raytheon Technologies (RTX), Honeywell International (HON), and Woodward (WWD), for instance, all rose roughly 3% to 4% this week. The S&P 500 is up about 1.4%.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.