My Account Menu

CAPA Login


Register to trial CAPA Membership!

Markets take a tumble, dragging suppliers share with them – Suppliers Share Wrap

2-Oct-2009

US and European stock markets generally traded sharply lower on Thursday, bringing aviation suppliers' shares down with them.

Aircraft interiors supplier, B/E Aerospace, was the worst affected, losing 6.8%, followed by the aircraft lessors, including Aercap (-5.8%), Genesis Lease (-5.7%), Aircastle (-5.2%) and Babcock & Brown Air (-3.4%). Uncertainty in the lessor market continues, with RBS Group confirming earlier in the week that its aircraft leasing business was up for sale, as it disposes of non-core assets.

Major aircraft manufacturers also dropped, with Boeing down 3.8%, and EADS, parent of Airbus, down 1.7%. The outlook for major manufacturers has been dampened by weak ordering this year and uncertainty regarding the extent and pace of recovery in the airline industry.

Embraer’s share price dropped 2.9% yesterday. The company reportedly completed a USD500 million bond sale for general corporate purposes, which may include short-term debt payments. The bonds are due in 2020, reportedly at a yield of 6.5%.

Selected Aviation suppliers’ daily share price movements (% change): 01-Oct-09


Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.