Ignore the Market Fears, Aviation Stocks Look Set for a Big Recovery
It's no secret that investors are concerned with conditions in the commercial aviation sector. Indeed, passenger traffic remains significantly down compared to previous years, and there's still a lot of uncertainty around the timing of a recovery in commercial aviation.
That said, instead of being afraid of investing in the sector, why not take a glass-half-full approach and look at it as an industry about to embark on a multi-year recovery? I think that's the right approach, and stocks like Raytheon Technologies (NYSE: RTX), General Electric (NYSE: GE), and Honeywell International (NYSE: HON), along with others, are worth a look. Here's why.
There are two key supporting arguments. The first is that history suggests that there's never been a significant issue with capital availability in the airline industry. Plenty of airlines have gone bankrupt over the years, and the industry has struggled to cover its cost of capital in the past -- however, as the International Air Transport Association has noted, "On average, during previous business cycles, the airline industry has been able to generate enough revenue to pay its suppliers' bills and service its debt."
Source Fool.com
