This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Boeing on Go With Air Cargo

Updated with closing share price.

SEATTLE ( TheStreet) -- Boeing (BA - Get Report) shares were higher Wednesday after the company said it sees its air cargo shipments business returning and Asian/Pacific traffic growth continuing.

Shares closed Wednesday at $50.53, up $1.03 or 2.08%. Year to date, Boeing shares are up about 18%.

In air cargo, "things are improving and we're hopeful, but there's still a way to go yet," said Jim Edgar, Boeing's regional director for cargo marketing, at the Asian Aerospace Expo in Hong Kong, according to Reuters.

Edgar said cargo growth typically leads economic and passenger growth by three to six months, Reuters reported. "This year, we're anticipating a deeper decline and it'll be the first time in history that we'll have two years of decline back to back," he said, but "the decline is slowing."

In a recent report, the International Air Transport Association said that both air freight and passenger numbers are starting to rise off their lows, with both up more than 3% in July from the previous month. "Freight is being driven by the inventory cycle," IATA said. Freight capacity in July was down 8.1% from a year earlier. Freight capacity utilization in July was 47.6%, up from 40% in January, but still several points lower than a year ago.

Cargo has been a sore spot for many carriers, especially those with a strong Asian presence. On a July earnings call, United (UAUA) CFO Kathryn Mikells said second-quarter cargo revenue declined 49%, reflecting reduced freight and mail volumes, "with the Japan market being among the hardest hit." Lower fuel surcharges were also a factor, she said.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BA $134.80 -1.66%
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs