Confidence is Returning to the Airline Industry

How Airlines Have Reacted to Pandemic Upheaval

Numerous aircraft carriers have made significant spending cuts since the start of the pandemic, leaving them with little liquidity. Nervous investors reacted to travel bans and lockdowns by delaying investments or diverting their funds elsewhere. Considering that 2020 was one of the worst years in airline history, this does not come as a surprise to most people.

Aviation Remains a Vital Part of the Worldwide Economy

Bhanu Choudhrie acknowledges that airline travel itself contributes only a small portion towards the Gross Domestic Product (GDP). However, its links to downstream and upstream sectors are what matter the most. He urges investors to act now to help get the industry out of a state of limbo and allow it to support the other sectors that depend on it.

Reasons for Optimism in the Aviation Industry

Several airlines have introduced new purchases or flights that point to signs of industry recovery. For example, Jet Blue added a new flight from London to New York in June 2021. Frontier Airlines and PSA Airlines have started to hire new pilots again, and Boeing will ship at least half of its undelivered aircraft by December 2021.

What is Ahead for People Holding Airline Stocks?

Investors suffered significant losses last year as airlines across the world lost more money in a single year than many ever had. According to the New York Stock Exchange Arca Global Airlines Index, the loss was as high as 31 percent for some stockholders. What that means for stockholders today is that they can continue to purchase investments at a discount while the industry recovers.

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Founder, C&C Alpha Group and Alpha Aviation Group | Based in London, United Kingdom | Learn More: https://uk.linkedin.com/in/bhanuchoudhrie

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