![10 biggest aviation companies in the world [2024]](https://assets.finbold.com/uploads/2024/05/10-biggest-aviation-companies-in-the-world-2024.jpg)
Summary: The aviation industry encompasses aircraft manufacturing, airline operations, and the production of aircraft components and systems. Currently, the future of the industry itself is looking promising, with strong demand and pricing power. As such, for those interested in the most convenient investment in the biggest aviation companies, we suggest a reliable brokerage platform like our preferred choice—eToro.
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What are aviation stocks?
Aviation stocks are shares of companies involved in the aviation industry. This industry encompasses everything from aircraft manufacturing to airline operations, as well as the production of components and systems for aircraft.
About the aviation industry
In 2023, the airline industry saw a significant turnaround in profitability, returning to a positive financial position. The International Air Transport Association (IATA) anticipates further progress in 2024, projecting a $49 billion operating profit and a net profit of $23 billion. Despite challenges, such as operational hurdles and rising costs like labor and debt servicing, airlines are expected to approach a 5% return on invested capital.
Some key notes about the state of the aviation industry in 2024 include:
- Passenger traffic is forecasted to either meet or exceed 2019 levels across all regions, though full recovery from the past four years of setbacks will take more time;
- Air freight markets may see subdued growth due to soft rates, even as volume increases;
- Manufacturers may face difficulties in scaling up production due to ongoing quality and supply chain issues.
Nonetheless, there’s optimism for airlines to surpass these projections with strong demand and pricing power.
Where to invest in aviation stocks
When considering investing in aviation stocks, you’ll find numerous online brokerage platforms available. Among these options, eToro stands out as a reputable service boasting over 30 million registered accounts. It provides a diverse array of investing tools and features tailored to meet different needs, including:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- Charting tools;
- The option to purchase fractional shares.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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eToro USA is registered with FINRA for securities trading.
What are the 10 biggest aviation companies?
The 10 biggest aviation companies are:
- The Boeing Company (NYSE: BA);
- Airbus SE (PAR: AIR.PA);
- Lockheed Martin Corporation (NYSE: LMT);
- Northrop Grumman Corporation (NYSE: NOC);
- Leonardo S.p.a. (MIL: LDO.MI);
- Honeywell International Inc. (NASDAQ: HON);
- Safran SA (PAR: SAF.PA);
- L3Harris Technologies, Inc. (NASDAQ: LHX);
- Rolls-Royce (LSE: RR.L);
- Raytheon Technologies Corporation (NYSE: RTX).
1. The Boeing Company (NYSE: BA)
Boeing is one of the largest aerospace companies globally, known for its commercial airplanes, defense products, and space exploration technologies. With a history spanning over a century, Boeing remains a dominant force in the aviation industry, supplying aircraft to airlines worldwide and providing defense systems to numerous governments.
Your capital is at risk.
2. Airbus SE (PAR: AIR.PA)
Airbus is another major player in the aviation sector, competing directly with Boeing in the manufacturing of commercial aircraft. Headquartered in Europe, Airbus produces a wide range of passenger aircraft, from single-aisle planes to wide-body jets, catering to various airline needs across the globe.
Your capital is at risk.
3. Lockheed Martin Corporation (NYSE: LMT)
Lockheed Martin is primarily known for its defense and aerospace technologies, including military aircraft, missile systems, and space equipment. As one of the largest defense contractors globally, Lockheed Martin plays a crucial role in supplying advanced aerospace systems to governments and organizations worldwide.
Your capital is at risk.
4. Northrop Grumman Corporation (NYSE: NOC)
Northrop Grumman focuses on aerospace and defense technologies, specializing in aircraft, spacecraft, and electronic systems. The company’s products range from military aircraft and drones to satellite systems and cybersecurity solutions, contributing significantly to national defense and space exploration efforts.
Your capital is at risk.
5. Leonardo S.p.a. (MIL: LDO.MI)
Formerly known as Finmeccanica, Leonardo is an Italian multinational company operating in the aerospace, defense, and security sectors. The company designs and manufactures a variety of products, including helicopters, aircraft components, and defense electronics, serving both civilian and military markets worldwide.
Your capital is at risk.
6. Honeywell International Inc. (NASDAQ: HON)
Honeywell is a diversified technology and manufacturing company with a significant presence in the aerospace sector. The company produces a wide range of aerospace products, including aircraft engines, avionics systems, and auxiliary power units, supplying airlines, aircraft manufacturers, and defense contractors globally.
Your capital is at risk.
7. Safran SA (PAR: SAF.PA)
Safran is a French multinational aerospace and defense company specializing in aircraft propulsion and equipment. The company manufactures aircraft engines, landing gear, and electrical systems, partnering with major aircraft manufacturers like Airbus and Boeing to supply critical components for commercial and military aircraft.
Your capital is at risk.
8. L3Harris Technologies, Inc. (NASDAQ: LHX)
L3Harris Technologies is an American technology company formed by the merger of L3 Technologies and Harris Corporation. The company operates in various sectors, including aerospace and defense, providing products and services such as avionics systems, communication solutions, and surveillance technologies to government and commercial customers.
Your capital is at risk.
9. Rolls-Royce (LSE: RR.L)
Rolls-Royce is a British engineering company renowned for its aircraft engines, power systems, and propulsion technologies. The company manufactures engines for commercial and military aircraft, as well as marine propulsion systems and energy solutions, serving customers in the aerospace, defense, and maritime industries worldwide.
Your capital is at risk.
10. Raytheon Technologies, Inc. (NYSE: RTX)
Raytheon Technologies is a multinational conglomerate formed by the merger of Raytheon Company and United Technologies Corporation. The company operates in various sectors, including aerospace and defense, producing aircraft engines, avionics systems, and missile defense technologies for both civilian and military applications.
Your capital is at risk.
Pros and cons of investing in aviation companies
Pros
- Global demand: The aviation industry serves a vital role in global transportation, with steady demand for aircraft, components, and services;
- Technological innovation: Aviation companies often drive innovation in aerospace technology, leading to advancements in aircraft efficiency, safety, and performance;
- Diversification: Aviation stocks can provide diversification within an investment portfolio, particularly for investors seeking exposure to different sectors and industries;
- Government contracts: Many aviation companies secure contracts with governments for defense and space-related projects, providing a stable source of revenue.
Cons
- Cyclical nature: The aviation industry is sensitive to economic cycles, with demand for aircraft and related products influenced by factors like economic growth, fuel prices, and geopolitical stability;
- Regulatory challenges: Aviation companies operate in a highly regulated environment, facing scrutiny from aviation authorities and government agencies, which can impact their operations and profitability;
- Technological disruption: Rapid technological advancements and emerging trends, such as electric propulsion and autonomous flight, could disrupt traditional aerospace business models and affect the competitiveness of aviation companies;
- Environmental concerns: Growing environmental awareness and regulations related to carbon emissions pose challenges for aviation companies, requiring investments in sustainable technologies and practices.
How to buy aviation stocks safely
Like any investment, buying aviation stocks requires careful consideration and research. Here are some steps to buy aviation stocks safely:
- Research aviation companies: Conduct thorough research on aviation companies, including their financial performance, market position, and growth prospects. Evaluate factors such as order backlogs, customer relationships, and technological capabilities;
- Assess industry trends: Stay informed about industry trends and developments, such as aircraft orders, regulatory changes, and technological innovations. Consider how these factors may impact the long-term prospects of aviation companies;
- Diversify your portfolio: Avoid putting all your investment capital into a single aviation stock. Diversify your portfolio across multiple companies and sectors to reduce risk and enhance potential returns;
- Monitor economic indicators: Keep an eye on economic indicators that may affect the aviation industry, such as GDP growth, oil prices, and air travel demand. Adjust your investment strategy accordingly based on macroeconomic trends;
- Consider long-term prospects: Take a long-term perspective when investing in aviation stocks, considering factors like industry dynamics, competitive advantages, and global demand for air travel. Avoid making short-term decisions based on temporary fluctuations in stock prices.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about the 10 biggest aviation companies
What is the biggest aviation company in the world?
The Boeing Company (NYSE: BA) is the largest aviation company, with a spectacular market capitalization of $109.79 billion.
Are aviation stocks a good investment?
Aviation stocks can be a good investment for investors seeking exposure to the aerospace industry. However, like any investment, they come with risks and uncertainties that should be carefully considered.
What factors affect aviation stock prices?
Various factors can influence aviation stock prices, including economic conditions, industry trends, regulatory changes, technological developments, and geopolitical events.
How do I buy aviation stocks?
You can buy aviation stocks through brokerage accounts like our go-to option, eToro. Nevertheless, be sure to conduct research on aviation companies, place buy orders for their stocks, and monitor your investments regularly.
Are there any alternative investments related to aviation?
In addition to aviation stocks, investors can consider alternative investments such as exchange-traded funds (ETFs) focused on aerospace and defense, as well as mutual funds or index funds with exposure to aviation companies.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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