Here is a simple comparison of airlines in two major events. 9/11 vs Covid. It may surprise you to know that we are seeing the exact same pattern we saw after 9/11. We can argue if the impact of covid had the same impact as the aftermath of 9/11. if the industry is even the same as it was back then if the bailouts are equal etc... But from a charting...
More debt - lower airfare prices - lower load factor- higher Jet fuel costs is a recipe for disaster. Factor in high unit labor costs thx to 6.8% Inflation, higher interest rates. and the situation even gets worse. Even if Airfare prices rose to 2019 levels. A perfect example of what a Zombie company is. Seeking to stay afloat and pay down debt rather than grow...
Here is another chart sporting a compelling story. A bullish one that is. As my other recent posts, the Dow Jones US Airlines seems to indicate there's still life in this bull market. From its high of early 2015, the index decline in pretty much a textbook flat i.e. an ABC with wave B trying to kiss the high. Then we have near equality between A and C. Another...