Boeing finally got its new 787 jetliner into the air Tuesday, more than two years after originally intended.
Roger King, airline analyst at CreditSights.com, shared his outlook on the sector. (See his stock picks, below.)
The Boeing 787 "is going to be a tremendous seller,” King told CNBC.
"As planes are delivered, the cash is coming into the company. I would buy Boeing right now.”
However, King warned that there is still a long way to go for airlines before they see a full recovery and said he prefers the smaller companies to the larger ones.
“[Smaller airlines] can make money at the current level of fares and they’re still continuing to take domestic market share from the big airlines,” he explained.
“The big airlines have a problem. They have beautiful global networks, tons of corporate global customers, but have high fixed costs in their hubs and the climate capacity is making it harder and harder for them to economically make people fly through their hubs.”
King Likes:
Boeing
Southwest Airlines
JetBlue Airways
AirTran Holdings
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More Market Views:
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Disclosures:
No immediate information was available for King or his firm.
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