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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Boeing on Go With Air Cargo

Updated with closing share price.

SEATTLE (TheStreet) -- Boeing (BA) 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,986.48 +25.91 0.15%
S&P 500 1,978.16 -0.18 -0.01%
NASDAQ 4,445.3830 -4.1810 -0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs