Defense companies expect strong profits to continue pushing up their share prices. "All the defense companies -- with very few exceptions -- have been doing extremely well with mostly double-digit earnings growth," said analyst Paul Nisbet at JSA Research. "And it's not just the military side, it's the commercial side as well. We're in the early stages of a maybe five-year up cycle."
The government wants to balance security efforts with welcoming international visitors, Homeland Security Secretary Michael Chertoff said. "Americans lose when we put up walls and keep people out," Chertoff said. Some U.S. business leaders are concerned about a decline in foreign visitors to the U.S. Secretary of State Condoleezza Rice said the travel industry should inform foreign visitors about U.S. security rules.
Airlines are adding more seats to the 787 Dreamliner than Boeing expected. Typical seating in the jetliner could rise from 259 to 280, executives said. The plane is expected to enter service in 2008. It is competing for orders against the Airbus A350.
Boeing said airlines will be able to fit more passengers in its 787 than originally expected. The use of composite materials allows for slightly more cabin space. So far, Boeing has booked 233 firm orders for the jetliner. Its 787-3 will carry between 290 and 330 people, up from 296 in a two-class configuration.