Air traffic numbers are rebounding sharply and executives are ramping up aircraft production targets to meet demand. Boeing aircraft stocks are on the move…

What’s the big deal? Aircraft manufacturing is one of the few sectors whose stocks haven’t recovered to pre-COVID levels. Industry executives expected travel to stay below pre-COVID levels for years. But US air traffic levels are back to 67% of 2019 levels — up from 40% in Jan.

Who are the big aircraft stocks? US-based Boeing (NYSE:BA) and France-based Airbus (EPA:AIR) dominate the industry — both of which are ramping up production targets.

• Over the past few years, aircraft manufacturers struggled to meet demand — due to their suppliers failing to deliver parts on time.
• Airbus’s CEO told suppliers to make the necessary investments for ramped-up aircraft production (via WSJ).

And then there’s Boeing’s issues…

• In 2019, 2 deadly accidents grounded Boeing’s 737 Max aircrafts around the world — sending Boeing’s stock down by more than 20%.
• In April 2021, 737 Max jets were cleared to return to the skies — except in China, which is expected to allow the plane to fly again this year.

The Joe’s take: Rising aircraft demand offers upside for aircraft manufacturers — but meeting that demand requires suppliers meeting their deadlines.

• For Boeing, getting past its 737 issues and receiving clearance from China to fly the plan adds additional upside to its stock.
• But supply chain disruptions from COVID created shortages in many industries — including the aircraft supply chain.

Who else to watch: Frontier Airlines, the low-cost airline, which stands to benefit from an air travel recovery