Finding safety in a volatile industry

This Airline Could Deliver a Potential Gain of More Than 50%...READ MORE
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This Airline Could Deliver a Potential Gain of More Than 50%

The news has focused on Boeing for some time. "Once global regulators clear Boeing Co's 737 MAX to fly again after deadly crashes, airlines which have put their fleets into mechanical hibernation since March will scramble to begin the biggest ungrounding effort in history.

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Analyst: "All hell is about to break loose"

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Quickly reintegrating Boeing's 737 MAX, a fast-selling model because of its fuel efficiency, longer range, and passenger capacity, is crucial for optimizing airlines' routes and improving margins after having to cancel thousands of flights.

Global airlines have warned of a major hit to profits due to the mid-March grounding of the MAX following two fatal crashes.

International regulators are meeting on May 23 to review Boeing software and training plans, though doubts remain over how quickly foreign authorities will clear new flights.

In the United States, following regulatory approval of a Boeing software fix and new training, airlines will have to run through an FAA-approved checklist, industry officials say.

Such work, which will vary by operator, includes cycling the engines, changing and filling fluids, removing covers from the engines and running routine electrical and hydraulics checks."

This sets up potential trading opportunities in the airline industry, as we explain in our latest article. In the article, we focus on risk and use a strategy that limits risk of the trade while targeting a gain of more than 50%.

You can find all of the details, including the specific trade, in our latest free educational article that is available right here.

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