Due to the pandemic-led supply chain disruptions and steep production cuts, the aerospace industry has been greatly impacted. The commercial segment suffered significantly due to global travel restrictions and the closure of borders. However, with the rapid evolution and commercialization of new technologies, the industry’s prospects look bright. Earnings by companies in the U.S. aerospace & defense industry have grown 8.8% per year over the last three years, and analysts expect annual earnings growth of 14% over the next five years. Also, escalating geopolitical tensions concerning Russia and China bode well for the aerospace and defense industry.
The Boeing Company (BA) in Chicago is one of the most prominent names in the aerospace industry. However, the company is struggling with low delivery capacity due to manufacturing flaws and required inspections and repairs. The company delivered 32 aircraft in January, its lowest number in three months as its side-lined 787 Dreamliner program continues to weigh on its ability to capitalize on a recovery in air travel. BA’s total revenues decreased 3.3% year-over-year to $14.79 billion in its fiscal fourth quarter, ended December 31. Also, the company incurred $4.50 billion in charges in the fourth quarter, including penalties to customers for pushing back deliveries. The stock has slumped 11.4% in price over the past six months and 1.7% over the past month to close the last trading session at $212.30.
