Key Takeaways LTM's November traffic rose 3.6% YoY, supported by 4.6% capacity growth and new domestic/international routes.November 2025 load factor of 85.4%, fell by 0.8% percentage points on a year-over-year basis.LTM carried 7.4 million passengers in November, with YTD total transporting 79.6M across its network.LATAM Airlines Group (LTM) reported a year-over-year increase in revenue passenger-kilometers (RPK: a measure of air traffic) for November 2025.LATAM Airlines reported a 4.6% year-over-year incr ...

Core Insights - RTX Corporation's commercial aerospace aftermarket segment has been a significant performance driver due to increasing air traffic and demand for aftermarket parts and services [1][2][10] - The company achieved a 9% year-over-year organic sales increase in its last reported quarter, with commercial aftermarket sales growing by 21% in Q1 2025 [2][10] - Global air passenger traffic is projected to grow by 5.8% year-over-year in 2025, indicating continued stable growth for RTX's commercial aftermarket sales [3] Financial Performance - RTX's commercial aftermarket sales contributed to a solid overall performance, with a 21% increase in Q1 2025 [10] - The company revised its 2025 adjusted earnings per share forecast to a range of $5.80-$5.95 due to increased import tariffs on steel and aluminum [4][10] - RTX shares have increased by 30.6% over the past year, outperforming the industry growth of 14.7% [9] Market Outlook - The robust aftermarket activity is expected to provide RTX with a strong long-term buffer, despite potential industry headwinds from tariff impacts [5][10] - Other aerospace companies, such as Boeing and Lockheed Martin, may also face similar tariff-related cost pressures [6] Valuation - RTX is currently trading at a forward 12-month earnings multiple of 24.70X, which is lower than the industry average of 28.04X [11] Earnings Estimate Trends - The Zacks Consensus Estimate for RTX's near-term earnings has seen downward revisions over the past 60 days, indicating a trend of decreasing expectations [12][13]

Core Insights - Rising U.S. defense spending is expected to benefit aerospace-defense firms focused on military aerospace, despite ongoing supply-chain challenges [1] - Strong global air passenger growth, which increased by 5% year over year and is projected to rise by 5.8% in 2025, provides a positive outlook for commercial aerospace players [1] - The aerospace-defense industry is characterized by companies that design and manufacture military and commercial aircraft, as well as related systems and services [2][3] Industry Trends - Impressive air traffic outlook is boosting growth prospects, with industry-wide revenue per kilometer (RPK) rising by 5% year over year to 806 billion [4] - The U.S. defense budget is a growth catalyst, with a proposed 13% increase to $1.01 trillion for fiscal 2026, enhancing contract opportunities for defense-focused companies [5] - Supply-chain issues continue to hinder growth, with a record backlog of 17,000 jets due to delivery delays and new U.S. tariffs exacerbating the situation [6][7] Industry Performance - The Zacks Aerospace-Defense industry ranks 62, placing it in the top 25% of over 250 Zacks industries, indicating bright near-term prospects [8][9] - The industry has underperformed compared to the Zacks S&P 500 composite and its own sector, with a collective gain of 14.1% versus 22.6% for the Aerospace sector and 17.4% for the S&P 500 over the past year [10] Valuation Metrics - The industry is currently trading at a trailing 12-month EV/Sales ratio of 3.17, compared to the S&P 500's 5.51 and the sector's 3.36 [13] Company Highlights - GE Aerospace reported a 21% year-over-year revenue increase to $11 billion, with earnings per share improving by 64.3% [16] - Airbus Group's revenues improved by 3% year over year, with earnings per share surging by 86% [20] - Huntington Ingalls secured a $74 million task order for modeling and simulation capabilities for the U.S. Air Force, indicating strong demand for its services [23]

Core Insights - LATAM Airlines Group reported a year-over-year increase in revenue passenger-kilometers (RPK) for June 2025, indicating growth in air traffic [1] Group 1: Capacity and Traffic - LATAM Airlines experienced a 10.7% year-over-year increase in consolidated capacity, measured in available seat-kilometers (ASK), driven by a 13.9% increase in domestic capacity in Brazil and a 12.3% increase in international capacity [2] - The consolidated traffic for LATAM Airlines increased by 10.2% year-over-year, although it did not outpace the capacity expansion, leading to a decrease in the consolidated load factor by 0.4 percentage points to 83.8% [4][11] - LATAM Airlines transported nearly 7 million passengers in June 2025, marking a 7.3% year-over-year increase, with a year-to-date total exceeding 41.5 million passengers [5][11] Group 2: Market Developments - New domestic routes were launched in Brazil from Aracaju to Congonhas and from Fortaleza to Juazeiro do Norte, along with an international connection between Bariloche in Argentina and Guarulhos in Brazil [3]

LATAM Airlines Group Performance - LATAM Airlines Group reported a year-over-year increase in revenue passenger-kilometers (RPK) for February 2025 [1] - The company experienced a 4.4% year-over-year increase in consolidated capacity, measured in available seat kilometers (ASK), primarily driven by a 9.1% increase in international operations [2] - LATAM's revenue passenger kilometers increased by 3.1% year over year, but the load factor fell to 83.3% from 84.4% in February 2024 due to capacity expansion outpacing traffic growth [2] Passenger Transport Statistics - LATAM Airlines transported over 6.5 million passengers in February 2025, reflecting a 1.8% year-over-year increase [3] - Other airlines, such as Ryanair and Allegiant, also reported traffic numbers, with Ryanair showing a significant increase in passenger numbers [3] Ryanair Performance - Ryanair transported 12.6 million passengers in February 2025, marking a 14% year-over-year increase, with a load factor of 92% remaining flat year-over-year [4] - The airline operated over 71,360 flights in February 2025, showing improvement from the previous month despite delays in Boeing deliveries [5] Allegiant Travel Company Performance - Allegiant's scheduled traffic, measured in revenue passenger miles, rose by 7.4% year-over-year in January 2025, with capacity increasing by 9.9% [5] - Despite the traffic growth, Allegiant's load factor declined to 78.8% from 80.7% in the prior year due to significant capacity expansion [6]