Aviation basket

The following basket contains only two companies from the industrials sector. UAL is one of the largest airlines in the world, and Boeing is one of the largest aerospace and defense companies.

Both companies could be considered as top picks in 2026-2027 due to an expected operational turnaround at Boeing and aggressive premium international expansion by United Airlines. It was seen that Boeing stabilized its production after pandemic. It is expected that in 2027 company will finally return to sustainable profitability.

Additionally United is executing its largest-ever global expansion for summer 2027, adding 10 brand-new international destinations and 13 unique routes.

United Airlines Holdings [Internal score 65/100] is one of the world’s largest network carriers. The company operates hubs in key U.S. metropolitan areas like Chicago, Denver, Houston, Newark/New York, San Francisco, Washington, D.C., and Los Angeles – having a unique position on trans-equatorial and transatlantic routes. United is currently executing an extensive fleet renewal program, incorporating hundreds of new narrow-body (Boeing 737 MAX, Airbus A321neo) and widebody (Boeing 787 Dreamliner) aircraft. The company is actively deploying its free cash flow (FCF) toward share buybacks and the repayment of debt accumulated during the pandemic, with the goal of achieving an investment-grade credit rating.

According to the financial report for the 3rd quarter of 2026 revenue increased 17.4% y-o-y and amounted to $17.9B. EBITDA margin for the latest quarter was around 11% level. EBITDA exceeded $2B level. Net income exceeds $1029 mln vs $949 mln for the same period in 2025. For the next quarter revenue is expected to be above 18.5B, giving 20% y-o-y growth.

The Boeing Company [Internal score 50/100] is an American aerospace and defense giant. Its business is divided into three segments: Commercial Airplanes (50% of revenue), Defense, Space & Security (35% of revenue), and Boeing Global Services (15% of revenue). The company’s record-high order backlog exceeds $715 billion. It is currently in a phase of financial recovery, a «turnaround story» with a focus on increasing deliveries and moving past losses on fixed-price defense contracts.

Revenue for the 2nd quarter of 2026 increased by 8% y-o-y to $24.6B, while gross profit stayed on the level $2.4B. For the next two quarters revenue is expected to exceed $23.9B and $26.3 accordingly. Net loss for the 2nd quarter was around $428 mln vs $612 mln loss for the same quarter of 2025. Next financial report for the 3rd quarter is expected to be published on the 27th of October.

The recent pullback offers a chance to enter before several important developments play out. United’s weaker fourth-quarter outlook reflects high fuel costs rather than falling demand, while stronger fares and slower growth in other costs should help protect margins. Renewed US-Iran diplomatic efforts could also ease pressure on oil prices. Boeing reports on 27 October, with attention on whether higher aircraft output is translating into stronger cash flow. The FAA’s recent certification of the 737 MAX 10 also clears the way for deliveries next year. We think both stocks have room to recover as these improvements become visible, while current prices still reflect significant concerns.