The biannual air show, which wasn’t held in 2021 because of Covid-19, is a chance for Boeing (ticker: BA) and
(AIR. France) to meet with customers and tell investors about any new business that they have won.
Still, Boeing stock was down 3% in morning trading at $213.50. The
Dow Jones Industrial Average
were off about 0.8% and 1%, respectively.
might have stolen some of Boeing’s thunder by announcing a 500-jet order from IndiGo. That’s a huge number for the aerospace industry. Vertical Research Partners analyst Rob Stallard called it a “monster order,” but Airbus stock was up just 0.1% in overseas trading.
Those share-price moves don’t necessarily mean investors were disappointed by the amount of new business either aircraft maker reported. Investors just tend to buy stocks in anticipation of good news, and to sell them when it happens.
Boeing stock has gained an average of roughly 5% over the two months bracketing the past dozen Paris Air Shows. Most of those gains have come before the shows. Shares have tended to dip during the gatherings, recovering in the following weeks.
Boeing stock rose almost 10% in the month leading up to the current show. Even including Tuesday’s dip, Boeing stock is up about 56% over the past 12 months.
The continuing recovery in air travel following the pandemic is one reason the stock is on a roll. In April, domestic air travel around the globe finally surpassed prepandemic levels, and total travel, including international routes, is trending that way.
Write to Al Root at firstname.lastname@example.org