When we consider investments we focus on our expertise, we are not going to focus on the trending “top stocks in 2020” such as Beyond Meat (BYND) or Facebook (FB) not because we are against those companies but mainly because we are not in the plant based meat business.
Air Market Group takes pride in providing expert insight on the aviation market for everyday investors just like you.
Part of the Global Economy
Technology has greatly altered the way which individuals in this world interact and conduct business. We have come a long way from the day of horse drawn carriage and now we are able to reach almost any point on Earth in just a flight or two.
Aviation has connected the world in a way that was once never possible. Not only has aviation completely changed the way that businesses operate and goods are delivered but it also sparked a certain awe and excitement that many other industries do not provide.
Just ask any pilot or aviation enthusiast if they are in the industry for the money or the excitement that it brings them, many will agree that although the industry can be lucrative their passion for aviation is what drives them on a daily basis.
Globalization efforts have been made possible thanks to Aviation. We are now able to travel and explore different cultures outside of our own and expose ourselves to unique and engaging situations that would have once not been possible had we not had the accessibility of being able to travel great distances with such ease.
As aviation companies continue to modernize and evolve, their profits continue to grow exponentially. Investing provides the opportunity for regular citizens to be able to shared the profits larger companies are creating.
Aviation is constantly adjusting and course correcting to maintain a positive path towards connectivity and efficiency around the globe. In terms of efficiency organizations are working around the clock to make engines and aircraft more efficient in the way they perform. In addition creating efficient operational systems with the implementation of new technology creates greater potential for profit margins in the industry.
Fast Growing Market
The aviation industry is incredible fast growing market. With new aircraft being released into the market it allows for aircraft manufactures to broadcast the new innovative features they have been developing. Major airlines are being created and falling every year.
The fight for the most profitable and sustainable is tough with competition being so high in the industry. This competition is beneficial to the customer as it helps drive down prices and increase quality of service.
The customer has high demands and many are willing to pay the premium for specialized service.
New airports around the world are being constructed in rural areas as livings wages are increasing. With there being more access to aircraft to more of the general population and airline tickets being at a record low this is a perfect combination to continue to drive consumers to choose flying for their next adventure.
Technology Driven Industry
With the growing demand for the best of the best this is pushing airlines, and technology companies to be constantly innovating. For an airline to attend a technology conference 20 years ago would have been strange, although this year Delta Air Lines (NYSE: DAL) took to the stage at CES 2020 – Consumer Technology Association.
With over 175,000 attendees participating in these events shows just exactly what these companies are focusing on in their day to day operations. Connectivity in the cabin is going to be to talk of the decade. Paper Boarding passes will be a thing of the past.
Soon the passenger experience will be seamless from exiting your ride, dropping off your bag, clearing through security and boarding the aircraft will soon be all a synchronized and automated process. Commercial airlines are developing systems that allow for facial recognition software to confirm identities.
While boarding the aircraft the facial recognition software will reconfirm the travelers identity with government databases and either allow or deny them for boarding.
In the private aviation field new technology is making cabin experience more comfortable and enjoyable.
With ambient lighting design executives on long-haul flights can now feel more in tune with the local time of their destination prior to arriving. Cabin experience is enhanced with high speed internet connectivity and low cabin pressure resulting in a more satisfied client.
When deciding which stocks to invest in within the aviation industry many enjoy the diversity that is offered with in the industry. One could create a list of airlines and trade between Delta (DAL), American (AAL) or United Airlines (UAL) to name three of the most well recognized American Based Airlines
One could also look to invest within the defense industry. Companies such as Lockheed Martin (LMT), Honeywell (HON) and Northrop Grumman (NOC) are in the business of securing government contracts on new technology that can help protect our nation.
In addition there are a wide array of companies that provide services to the aviation industry from financial to materials. Aircraft leasing companies provide investors with gains on their ability to consistently generate cash flow based on the monthly payments their receive on the aircraft they own.
To list a few aircraft leasing companies one could look at Aircastle (AYR), Fly Leasing (FLY) or Air Lease (AL) as potential options for investment opportunities.
The aviation industry as you can see has a wide array of factors to take into consideration. As a whole it provides a great niche for investors to focus in on something they are passionate about.
Warren Buffet is well known for his quote “Invest in what you know…and nothing more.” that is why are so passionate about sharing information and education on the aviation industry.
With so many players in the aviation market we can be certain that the industry is not going away anytime soon. Now the question that remains is who will rise up to the top! Until next time keep flying and happy trading!
As a disclaimer all trade ideas are for education purposes and not meant to be used as financial advise. All investing involve risks, including loss of principal. Past performances do not guarantee future results or success. Stock and Forex markets are volatile and can decline significantly in response to adverse regulatory, market, economic development. Asset allocation and diversification do not eliminate risk. All Content is used for illustrative purposes and for educational use only.