Market Commentary

Airline Industry

Airline Industry

The Centers for Disease Control and Prevention (CDC) relaxed coronavirus screening guidelines for international travelers entering the U.S. this week. However, the International Air Transport Association (IATA) has stated it will take three years for world airline travel to return to pre-COVID levels.

In 2019 airlines in the U.S. make $17 billion dollars and this year they are estimated to lose $24 billion. It is likely that domestic service will recover sooner. A recent survey showed that 65% of people planning a trip next year will likely do so by car, not flying.

Stocks prices for this industry will struggle. Travel, especially international travel, by plane is going to take a long time to recover.