Safran and Air France-KLM Leading the Way as Rebound Gains Momentum
Ten out of eleven aviation stocks are trading in the green, with none in decline. Air France-KLM is leading the charge with a massive jump of 13.51%, benefiting directly from the easing of kerosene prices – Brent has fallen to $93, compared to much higher levels in recent weeks. SAFRAN, a heavyweight in the sector with over 131 billion euros in market capitalization, is up by 11.24% and is driving the entire sectoral index higher. Figeac Aero (+7.88%), AIRBUS (+7.85%), and LISI (+7.04%) complete a uniformly positive picture.
The magnitude of the movement exceeds that of the wider industry (+6.94%) and defense (+7.20%), sectors that are also experiencing strong growth. The CAC 40 is up by 4.71%, and the SBF 120 by 4.61%, confirming a notable outperformance of the aviation sector, the most sensitive to the combination of lower energy costs and increased visibility on international air routes.
A Powerful Rebound, but Still Technical at this Stage
For investors, the question remains whether this spectacular surge can be sustained. Several technical signals suggest caution. The sectoral RSI, weighted by market capitalizations, stands at 43 – a neutral zone indicating the extent of the previous correction rather than excessive optimism. The sector’s average weighted price has returned above its 50-day moving average and remains above the 200-day moving average, indicating medium to long-term momentum has turned bullish again.
Additionally, the sectoral MACD has just crossed above its signal line, confirming a nascent positive trend. However, several iconic stocks like Airbus and Air France-KLM are still below their 50 and 200-day averages, indicating that today’s session is more of a sharp technical rebound than a complete trend reversal. The future will largely depend on the actual confirmation of the reopening of the Strait of Hormuz and progress in the talks announced in Pakistan since Friday. Currently, the sector is recovering, but pre-crisis levels have not yet been regained.
