It’s going to be a tough slog forward.
Shares go to heck after the mother of all revenue-warnings, plunge 20% in two days, including 7% after hours. Its disclosure confirms Buffett’s decision to dump his airlines in mid-crash.
Airlines, automakers at the forefront. And it has only just begun. EU waives rules banning state aid. Ryanair, which doesn’t need a bailout, is furious.
Airlines don’t expect a quick recovery back to “normal” either. Based on their decisions about aircraft in their fleets, they expect this to drag out for years.
YRC, one of the largest less-than-truckload carriers, wheezes under the strain.
Just can’t catch a break: Friday after hours, United disclosed it abandoned its junk-bond offering after investors balked. Shares fell.
Then there’s Air France-KLM, with two governments squabbling over bailouts and acting like they want a divorce.
It started in mid-February for jet fuel and in mid-March for gasoline.
Their megaships turned from a revenue-generating asset into an expensive-to-maintain nightmare.
“There has been a clear divide between winners and losers.”