Farnborough International Airshow opened with investors watching two major themes: commercial aircraft demand and accelerating global defence spending. Aircraft manufacturers and defence contractors are highlighting opportunities, but traders are focused on whether companies can convert demand into revenue growth.

Boeing and Airbus are expected to compete for aircraft orders, but production constraints remain a major issue. Shortages of engines, components and manufacturing capacity continue to limit how quickly new aircraft can be delivered. Order announcements matter, but execution and cash flow will determine which stocks benefit most.

Why this matters

The airshow comes during elevated geopolitical uncertainty. Defence companies are seeing demand for missile systems, drones and autonomous technology, while aerospace firms must manage supply-chain challenges.

Winners

Commercial aerospace manufacturers and suppliers

$BA (Boeing), $GE (GE Aerospace) and $RTX (RTX) could benefit from stronger aircraft demand. Boeing may gain from additional aircraft orders, while GE Aerospace and RTX benefit from engines, aerospace systems and long-term maintenance contracts. Investors will watch whether these companies can improve deliveries and convert backlogs into revenue.

Names: $BA (Boeing), $GE (GE Aerospace) and $RTX (RTX)

Defence contractors and military technology

$LMT (Lockheed Martin), $NOC (Northrop Grumman) and $GD (General Dynamics) may benefit from higher defence budgets and increased demand for military equipment. These companies provide fighter aircraft, naval systems, missiles and advanced defence platforms. New contracts could create growth opportunities.

Names: $LMT (Lockheed Martin), $NOC (Northrop Grumman) and $GD (General Dynamics)

Drone and autonomous systems companies

$AVAV (AeroVironment), $KTOS (Kratos Defense & Security Solutions) and $LHX (L3Harris Technologies) could benefit from growing demand for drones, battlefield communication systems and autonomous technology. Modern conflicts have increased the importance of unmanned systems.

Names: $AVAV (AeroVironment), $KTOS (Kratos Defense & Security Solutions) and $LHX (L3Harris Technologies)

Losers

Airlines facing aircraft delivery delays

$LUV (Southwest Airlines), $ALK (Alaska Air Group) and $AAL (American Airlines Group) could face pressure if aircraft manufacturers continue struggling with deliveries. Delays can restrict fleet growth, increase maintenance expenses and reduce efficiency. Airlines depend on reliable deliveries to modernise fleets.

Names: $LUV (Southwest Airlines), $ALK (Alaska Air Group) and $AAL (American Airlines Group)

Low-cost carriers facing fleet pressure

$JBLU (JetBlue Airways), $ULCC (Frontier Group Holdings) and $SAVE (Spirit Airlines) may remain vulnerable to higher aircraft costs and limited fleet availability. Smaller carriers are more sensitive to delays and rising expenses.

Names: $JBLU (JetBlue Airways), $ULCC (Frontier Group Holdings) and $SAVE (Spirit Airlines)

Aerospace suppliers if expectations become too high

$HWM (Howmet Aerospace), $SPR (Spirit AeroSystems Holdings) and $BA (Boeing) could see short-term selling pressure if order announcements disappoint investors or supply-chain problems continue. Aerospace remains growth market, but stocks can become volatile when expectations are high.

Names: $HWM (Howmet Aerospace), $SPR (Spirit AeroSystems Holdings) and $BA (Boeing)