Aviation Stocks: Why Air Freight May Be A Better Bet Than Airlines & Airports

The aviation sector remains challenging for investors, with airlines exposed to volatile fuel costs, currency movements and dollar-linked lease payments. Pankaj Pandey, Head of Research, ICICI Direct, says airlines and airport operators face several factors beyond their control, making the sector difficult from a portfolio perspective. Air freight logistics, however, could offer a relatively better opportunity, supported by strong shipment growth, e-commerce and India’s expanding free trade agreements. Blue Dart is highlighted as a company benefiting from the air freight opportunity. While the broader aviation value chain carries risks, logistics could provide a more attractive long-term play than airlines or airports.