The aeronautics sector faces stormy weather

The aeronautics sector faces stormy weather, assesses La Tribune. Analysts are pessimistic about the aeronautics sector in a context of economic slowdown and high oil prices affecting the health of major US airlines. Oddo Securities deemed yesterday that “airlines will be forced to take several decisions that will be unfavourable to manufacturers and parts suppliers”, for instance, a rise in ticket prices (which will weigh on passenger traffic) or a decrease in capacities. While the broker deems that Thales and Finmeccanica are safe, it warns about difficulties at Safran, Zodiac and EADS. An Oddo Securities analyst points out that EADS faces “a high risk of deterioration of its balance sheet, as well as difficulties in generating new cost savings”. La Tribune