Airlines Turbulent Side Hustle
The world’s airlines are on the back foot. IATA, the industry’s biggest trade association, has just grounded profit expectations by cutting them back over a fifth! That’s left invstrs pondering both their airline holdings, and whether we’re heading for a more serious industry slowdown. Mondays, eh?
For a side hustle, airlines sometimes move commercial cargo if they have space in their holds. Trade tensions stemming from the US and China are impacting the amount of cargo with which they can fill up their holds. The upshot? Invstr’s are faced with weakened revenues, even less of which are making it to the bottom line due to the rising cost of jet fuel.
If there’s a saving grace for the airlines, it’s that passengers still have a healthy appetite for flying. With the economy still in good shape overall, holidays and business trips are expected to see airlines through their coming earnings. Airlines added one seat to their planes for every 20 in the last quarter, trying to capture this demand.
Yet, we’re not in normal times. In March, 2 of Boeing’s new 737s went down, exposing an out-of-sorts blip in flight safety. Emirates President Tim Clark worries that the repair job for the faulty 737 could spark loud disagreements between regulators if they don’t “all get onboard”, which risks prompting a fear of flying among the public. Now of all times!
Avengers Crushes Box-Office Records
The world’s airlines are on the back foot. IATA, the industry’s biggest trade association, has just grounded profit expectations by cutting them back over a fifth! That’s left invstrs pondering both their airline holdings, and whether we’re heading for a more serious industry slowdown. Mondays, eh?
For a side hustle, airlines sometimes move commercial cargo if they have space in their holds. Trade tensions stemming from the US and China are impacting the amount of cargo with which they can fill up their holds. The upshot? Invstr’s are faced with weakened revenues, even less of which are making it to the bottom line due to the rising cost of jet fuel.
If there’s a saving grace for the airlines, it’s that passengers still have a healthy appetite for flying. With the economy still in good shape overall, holidays and business trips are expected to see airlines through their coming earnings. Airlines added one seat to their planes for every 20 in the last quarter, trying to capture this demand.
Yet, we’re not in normal times. In March, 2 of Boeing’s new 737s went down, exposing an out-of-sorts blip in flight safety. Emirates President Tim Clark worries that the repair job for the faulty 737 could spark loud disagreements between regulators if they don’t “all get onboard”, which risks prompting a fear of flying among the public. Now of all times!