Enormous uncertainty about the structural change in the lucrative business travel segment.
Airlines, meanwhile, face pent-up demand of the wrong kind.
Still collapsed revenues, astronomical losses, red-hot cash-burn, hellish new piles of debt. Meanwhile, amid craziest markets ever, airline shares soared.
But don’t fear for airline shareholders & creditors; they get to benefit from another $15 billion via “Taxpayer Capitalism.”
Top 4 airlines burned $45 billion on share buybacks since 2012. If airlines run out of money, Chapter 11 bankruptcy works. Airlines proved it.
L-Shaped Recovery for Air Lines. Staking their future on a vaccine.
The curious effect of the election and now possibly the surge in virus infections.
They didn’t get bailed out by taxpayers. But in a radical experiment these days, investors got to eat the losses, as they should.
What the TSA said in its PR stunt and what it forgot to say.
“You’re the Collateral.” Separating the assets (including you) from the liabilities (your miles), and pledging the assets.