Imported Article – 2026-04-23 12:57:43

Aeronautics and Defense Stocks Plummet Despite Global Tensions Rise

The war is not always good for defense companies. While Iran and the United States have been at war for two months now, sellers of aircraft and aviation parts have seen their stocks plummet. Since February 28, the date of the Israeli-American offensive against Iran, Thales’ shares have dropped by nearly 5%, while those of Dassault Aviation and Airbus have plummeted by over 9%, and Safran’s by almost 20%.

Initially, this trajectory may seem illogical, as the intensification of military conflicts should push countries worldwide to order more military aircraft and weapons. This is because sales of parts and aircraft to armies make up between 70% and 80% of Thales and Dassault’s sales, and between 20% and 30% of Airbus and Safran’s activities.

However, before the positive effects of global rearmament are felt on the orders of equipment manufacturers, their civilian clients are suffering from the resurgence of geopolitical tensions.

Three Companies Highly Dependent on Civil Flights

The performance of the aviation giants depends partly on civilian air traffic. On Tuesday, Pascal Bouchiat, Thales’ Director of Finance and Information Systems, mentioned that several airlines had decided to stop flights that were no longer profitable due to rising jet fuel prices. But the less the planes fly, the less airlines and lessors need to maintain and replace their aircraft.

READ ALSO

Aeronautics: a new french high-temperature composite materials industry for the aircraft of tomorrow