Continued profits for US airlines foreseen if recession hits
Strong customer demand and positive traffic trends in the face of current global trade tensions as well as decreasing fuel costs should enable US airlines overall to maintain profitability if a recession should strike in 2020, JP Morgan analyst Jamie Baker writes in a Nov 19 research summary of the global airline industry. 2019 marks the first in 4 consecutive years that operating and pre-tax margins have expanded for most of the major US airlines Baker covers. He credits the expansions to capacity growth discipline at the beginning of 2019 and a further tightening of capacity after the grounding of Boeing's 737 Max, leading to increased pricing power for US airlines, particularly those with fewer Max aircraft in their fleets. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-11-21/general/continued-profits-for-us-airlines-foreseen-if-recession-hits
https://portal.staralliance.com/cms/logo.png
Continued profits for US airlines foreseen if recession hits
Strong customer demand and positive traffic trends in the face of current global trade tensions as well as decreasing fuel costs should enable US airlines overall to maintain profitability if a recession should strike in 2020, JP Morgan analyst Jamie Baker writes in a Nov 19 research summary of the global airline industry. 2019 marks the first in 4 consecutive years that operating and pre-tax margins have expanded for most of the major US airlines Baker covers. He credits the expansions to capacity growth discipline at the beginning of 2019 and a further tightening of capacity after the grounding of Boeing's 737 Max, leading to increased pricing power for US airlines, particularly those with fewer Max aircraft in their fleets. <br/>
