The airline sector comprises thousands of airlines around the world. The biggest market is the Asia-Pacific, specifically with the growth of wealth in China. The United States is the world’s second-biggest market. The airline sector consists of the airlines and aviation parts and services companies that work with the airlines. The airline sector can also be used as a gauge on the global economy.
In this regard, airline stocks are worthy candidates to follow, even if an investor isn’t interested in buying the shares. The reason for this is that an uptick in economic activity is typically seen first among transportation stocks, especially the airline sector. As individuals have more disposable income, they are more likely to travel by air.
The airline sector has been hot in recent years, along with other transportation stocks. These stocks are typically a breakout sector of the stock market, with airline stocks moving before the broader stock market.