Airlines Set to Announce Strong Earnings, but Economic Uncertainty Raises Fresh Concerns Written 12 April 2023


American Airlines aircraft at Phoenix Sky Harbor International Airport. | Quintin Soloviev/Wikipedia; CC BY-SA 4.0

Reuters reports major US airlines “are expected to reiterate the strength of travel demand when earnings season gets underway later this week.” At the same time however, “with rising interest rates, high inflation, mounting job losses and turmoil in the banking industry increasing the odds of an economic recession, the spotlight will be on the elasticity of consumer demand.” While pent-up travel demand as well as “constrained airline capacity due to shortages of aircraft, spare parts, and labor have, thus far, allowed the industry to avoid the fallout from a slowdown in the broader economy,” it is still not clear “how long this travel boom will last.”
Full Story (Reuters)