Air travel shares set to stay aloft in H2
Air travel related stocks have had a stronger-than-expected post lockdown recovery.
While some market watchers expect these stocks to start giving back some gains as air capacity comes back online, IGTV’s @AngelineOng takes a look at why Boeing, Airbus, Rolls-Royce and General Electric could continue to benefit in the second half of 2023.
(Video Transcript)
Aviation stocks' H2 preview
The aviation industry is expected to do well in the second half (H2) of the year.
One example is Britain's senior, which saw its profits double in the first six months. This growth is attributed to the improvement in getting airplane parts and supplies, which was a problem before.
Another factor is the "revenge travel" trend where people are eager to go on trips after being locked down or restricted. This trend has also contributed to the company's success.
Boeing and Airbus
British engineering firms that supply airplane manufacturers like Boeing and Airbus are benefiting from the increased demand for air travel. Boeing and Airbus are both showing strong recovery in their stocks, which means their value is going up.
The desire for experiences and spending time with loved ones after the lockdown and pandemic has caused people to prioritise travel over buying things. This has contributed to the increased demand for air travel.
Rolls-Royce and General Electric
Rolls-Royce and General Electric, which are aerospace engineering companies, have also raised their profit forecasts because of this positive outlook.
General Electric's stock has experienced a strong rally in performance. Overall, these companies are bouncing back faster than expected from the lows they experienced during the pandemic. If this continues, it suggests that investing in these stocks for the long-term could be a good strategy.
So if you're considering trading stocks in the aviation industry it may be worth considering these because they are expected to continue doing well.
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