Airline stocks have soared. They’re not in the clear yet
Julia Horowitz, Fintech Zoom Business
Air travel in America is back. This is great news for airline stocks, which rebounded this year in hopes of a resurgence of domestic travel.
What’s happening: The Transportation Security Administration said it screened more than 2 million passengers on Friday over the weekend — Maximum number Since the beginning of March 2020. Prior to the pandemic, TSA screened an average of 2 to 2.5 million travelers per day.
“The increase in tourists shows the country’s resilience and high confidence in COVID-19 measures, including easy access to vaccines,” TSA chief Derby Lajoy said in a statement. ..
US airline stocks surged in 2021 due to growing optimism about the return of travel. American Airlines shares have increased 49% since the beginning of the year and have increased 64% in the last 12 months. Delta Air Lines rose 16% this year and 71% from June 2020. Meanwhile, the S & P 500 is up 13% year-on-year.
However, carriers are still in serious financial crisis.
Earlier this month, American Airlines revealed that net bookings were around 90% of 2019 levels. The company expects leisure bookings to “approach or exceed the corresponding 2019 levels during peak summer travel” if current trends continue.
However, second-quarter revenue is expected to decline by approximately 40% compared to the same period in 2019.
Problem: Demand for travel and long-haul flights, which are important sources of revenue, remains very depressed.
“Corporate travel is improving. [but] Delta CEO Ed Bastian told analysts at a meeting earlier this month.
Rising oil costs also cause headwinds. Crude oil prices reached their highest levels in more than two years on Monday, thanks to expectations for rising fuel demand. Brent crude oil futures, the global benchmark, rose to $ 73.64 per barrel.
Bastian believes corporate travel will begin to pick up in the coming months and executives are eager to fly again.
However, the global situation of air travel remains uncertain, especially as the new Covid-19 variant is ringing the alarm in Europe.
British Airways owner IAG’s share price rose 27% in 2021 and fell 3% in London on Monday. .. Low-cost carrier easyJet, which increased by 13% this year, decreased by 2%.
Johnson and US President Joe Biden US-UK Travel Corridor When they met in the UK last week, a move that would be supported by airlines eager to increase popular routes. However, viral uncertainty in the United Kingdom can hamper these plans.
Elon Musk once again demonstrates his power over the cryptocurrency market.
Musk does not say how he expected clean energy usage to be monitored. Tesla did not respond to a request for comment from Fintech Zoom Business.
Bitcoin was finally traded at about $ 39,200 per coin.
Prices haven’t recovered yet. Bitcoin closed at around $ 56,800 in April, but fell to nearly $ 31,000 last week.
Bitcoin is projected to generate more than 130 million metric tons of carbon emissions in China by the time technology energy consumption peaks in 2024, according to a study released in April.
That level of emissions would have exceeded the total annual production from the Czech Republic and Qatar in 2016.
Moreover, if China’s Bitcoin industry is a country, its total energy consumption was ranked 12th in the world in 2016, ahead of major economies such as Italy and Saudi Arabia, according to a survey. Let’s do it.
GM shareholders have never had something better than this
Mary Barra coming soon Best shareholder meeting For over seven years of her tenure as CEO of General Motors .
Last year, the company struggled to recover from the double blow of the pandemic. The pandemic closed most factories and dealers, questioning the demand for vehicles. And a six-week strike cost nearly $ 3 billion.
My Fintech Zoom Business colleague Chris Isidore writes about what will change in a year. GM, which hosts its annual meeting on Monday, has closed some factories due to a shortage of computer chips and has been forced to cut production, but has the most profitable 12 months in 112 years of history. I’m about to complete.
The company has also achieved its goal of migrating to the future of all electricity. Morgan Stanley estimates that in April it sold more electric vehicles worldwide than Tesla and Volkswagen.
Investor Insights: Wall Street rewards automakers for their outstanding performance. GM’s share price has risen almost 48% this year, and its market value reached a record $ 93 billion last week.
This is a big shift for Barra, who took up the top job of the company in 2014. In the first six years as CEO, stocks have fallen by 10%. Currently, they can continue to climb and 20 of the 22 analysts covering the company give a “buy” rating.
Coming tomorrow: US retail sales in May will set the bar for consumer spending as the economic recovery accelerates.
Airline stocks have soared. They’re not in the clear yet Source link Airline stocks have soared. They’re not in the clear yet